A carrier frequency offset compensation method for a communication system is provided. The method includes: mixing, filtering and interpolating an input signal according to a mixing parameter, a first filtering parameter and a first interpolation parameter, respectively, to generate a processed result; calculating a carrier frequency offset estimation value of the input signal according to the processed result; adjusting the mixing parameter according to the carrier frequency offset estimation value; and mixing, filtering and interpolating the input signal according to the adjusted mixing parameter, a second filtering parameter and a second interpolation parameter, respectively. The first interpolation parameter is associated with a cut-off frequency corresponding to the first filtering parameter.