A method and system provide frequency offset compensation in a wireless communication device. A frequency offset compensation module (FOCM) correlates a received reference signal with sub-replica reference sequences to obtain a vector of matched filter output values associated with a time offset identified by a correlation time index value. The FOCM determines a correlation score vector using a combined energy associated with matched filter output values. The FOCM then determines a first phase difference based on matched filter output values corresponding to adjacent sub-replica sequences. The FOCM computes a second phase difference by linearly combining a selected first phase difference and at least one neighbor first phase difference having a second correlation time index value that differs from a first correlation time index value of the selected first phase difference. The FOCM uses the second phase difference to provide compensation for a frequency offset associated with received signals.