An apparatus and method are described that provide an optimal blind channel estimation approach for a differential quadrature phase shift keying (DQPSK) modulation communication receiving system. The described blind channel estimation technique takes advantage of the characteristics of DQPSK constellations and the fact that estimates of relative channel phase distortion, and not absolute channel phase distortion, are sufficient for a DQPSK demodulation scheme. The described channel estimation approach provides low complexity, offers improved demodulation performance, and is theoretically optimal. It is particularly useful in existing DQPSK-based communications protocols that do not provide sufficient reference symbols for channel estimation.