performance of the cellular CDMA overlay system is analyzed which shares the same band with existing microwave narrowband system to enhance the spectral efficiency. To suppress the interfreence from narrowband system, we used a linear predicition filter that adopts the adaptive least mean square algorithm. Alalyzing the performance in the Personal Communication Services channel, characterized as a multipath Rician fadng channels, we considered the power control to solve the near-far problem, and-off and multipath diversity. We also considered interleaving and channel coding to improve BER performance of the CDMA system.