This paper presents a bandwidth efficient self-cancellation scheme for interchannel interference (ICI) in OFDM transmission systems. Conventional self-cancellation schemes provide an excellent cancellation capability of ICI for relatively low frequency offsets. However, this capability is achieved at the expense of bandwidth efficiency and thus a higher modulation level is often used to compensate for desired throughput. By applying a partial differential coding (PDC) to the transmit data prior to the ICI self-cancellation, bandwidth efficiency is greatly improved by a factor of 2, while maintaining a string of data (+1, -1) alternately for the ICI. self-cancellation in OFDM systems. Computer simulations show that the performance of the proposed scheme is comparable to the conventional self-cancellation scheme with slight performance degradation for relatively lower frequency offsets.