An apparatus and method for channel estimation and CP reconstruction in an OFDM-STBC mobile communication system are provided. An ISI canceller cancels ISI signal components from first and second received symbol sequences. A cyclicity restorer cancels ICI signal components from the ISI-cancelled first received symbol sequence and the ISI-cancelled second received symbol sequence. A recoverer acquires the recovered sequence estimates of the ICI-cancelled first received symbol sequence and the ICI-cancelled second received symbol sequence by decoding. The ICI cancellation of the ISI-cancelled first and second received symbol sequences and the ISI cancellation of the second received symbol sequence are iterated a predetermined number of times.