Orthogonal Frequency Division Multiplexing (OFDM) system is one of the multicarrier techniques which is robust against Inter-symbol-Interference, multipath fading and very easy to apply in transmitters by using inverse fast Fourier transform IFFT and at the receivers by using fast Fourier transform FFT. In a communication system, channel estimation is very important issue for the data detection. In coherent detection, one of the popular techniques is to use pilot tones as a reference signal in OFDM symbols. In the comb-type pilot tones insertion, pilot tones are inserted into each OFDM symbols, but inserting a large number of pilot tones will lead to channel capacity reduction or bandwidth expansion [1-2]. In this work, to overcome this transmission loss, a modified least square (ModLS) algorithm for fast time varying wireless channel at comb-type pilot arrangement in QAM signals for OFDM system is proposed. The simulation results obtained from the proposed algorithm showed a good performance in noisy wireless channels. In addition, it has been compared with least square (LS) algorithm in different signal to noise ratios and different channel tabs.