An approach for improved compensation for nonlinear distortion in multicarrier satellite systems is provided. Source reflecting encoded and modulated sequences of source data symbols are received. Each source signal is predistorted, and a transmit filter is applied to each predistorted source signal. Each filtered signal is translated to a carrier frequency, and the translated signals are combined into a composite signal for transmission via a multicarrier transponder. The final predistorted version of each source signal is generated via an iterative process of a number of stages, wherein, for a given stage and for each source signal, the process comprises: receiving a prior predistorted version of each source signal from a preceding stage; processing each prior predistorted source signal based on all of the received prior predistorted source signals, wherein the processing is performed based on a characterization of one or more characteristics of the multicarrier satellite transponder.