A method and apparatus for estimating frequency offset and timing offset of a first Mobile Station (MS) in a communication system is provided. The method includes receiving a composite signal at a plurality of receiver antennas of a Base Transceiver Station (BTS). The composite signal includes a first signal transmitted from a first MS and a second signal transmitted from a second MS. The composite signal includes one or more tiles. Each tile includes a plurality of data sub-carriers, a plurality of first pilot sub-carriers, and a plurality of second pilot sub-carriers. A total phase offset of the first MS is estimated based on a complex conjugate product of pilot symbols of the plurality of first pilot sub-carriers. Thereafter, a first phase offset corresponding to the timing offset of the first MS is estimated based on a Power Delay Profile (PDP) of one or more first pilot sub-carriers. Finally, a second phase offset corresponding to the frequency offset of the first MS is determined based on the total phase offset and the first phase offset.