In this paper, a new approach is proposed for effectively estimating the occupied bandwidth of frequency modulation (FM) signals. The proposed method makes use of the smoothing niter for removing the perturbation of spectrum envelope, which frequently occurs in FM signals having the instantaneous frequency. An effective procedure is derived for finding the relatively accurate bandwidth of FM signals combined with x-dB bandwidth measurement method, which International Telecommunication Union-Radiocommunication (ITU-R) recommended. It was shown that the proposed approach provides superior performance relative to the one obtained with the x-dB bandwidth measurement method in terms of sample bias and mean squared error of bandwidth estimates.