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Orthogonal frequency division multiplexing (OFDM) has been selected for broadband wireless communication system. OFDM can provide large data rates with sufficient robustness to radio channel impairments. One of the major drawbacks for OFDM system is Carrier frequency offset (CFO). Frequency offset has been recognized as a major disadvantage of MIMO OFDM. The OFDM systems are sensitive to the frequency synchronization errors in form of Carrier Frequency Offset (CFO), because it can cause the Inter Carrier Interference (ICI) which can lead to the frequency mismatched in transmitter and receiver oscillator. To compensate the effect of CFO we have propose various CFO estimation and compensation techniques and algorithms by now. In this project, exploiting the reason of creating CFO and the effects of the CFO on the performance of the OFDM systems by simulation. The major CFO estimation algorithm and techniques will be reviewed and discussed in literature briefly for estimating and compensation of the effect of CFO will be offered. Carrier frequency offset (CFO) is one of most well-known disturbances for OFDM. It generates intercarrier interference (ICI) and degrades OFDM performance. In order to mitigate the negative influence, CFO is usually estimated and compensated accordingly during OFDM system. While its performance degrades in multi-path dispersive channel. In general, it provides better accuracy than STO. In order to reduce the noise effect, itsaverage can be taken over the samples in a Cyclic Prefix (CP) interval.