A channel estimation method and system using linear correlation based interference cancellation combined with decision-feedback-equalization (LCIC-DFE) are provided. The channel estimation method includes generating a first correlation sequence by calculating a linear correlation between a baseband sampled complex signal and a locally stored pseudo-noise signal and obtaining a second correlation sequence by iteratively removing inter-path interference from the first correlation sequence and generating a first channel impulse response (CIR) sequence based on the second correlation sequence. And, obtaining a third correlation sequence by removing random-data interference from the second correlation sequence based on the first CIR sequence and a feedback signal and generating a second CIR sequence based on the third correlation sequence.