DS-CDMA system requeires a power-efficient transmission and reception scheme to increase capacity. In this paper, coherent detection of DS-CDMA system with M-ary orthogonal signaling is considered, and multistage decision-directed channel estimator is proposed. The multistage decision-directed channel estimator is based on the fact that better channel estimation can be obtained by using the final decisions of the detector with a conventional decision-directed channel estimator. In this scheme, symbol detector and channel estimator operate algernaely. by simulation, it is shown that the proposed method achieves performance gain capare to conventional method, specially at low signal to noise ratio over fast time-variant channel with diversity.