OFDM is very effective for the high speed communication system. However, OFDM has the problems of high PAPR and serious ICI, which is different from the single carrier system. Especially, ICI problem caused by phase noise, Doppler effect and frequency offset is main reason for poor performance since it breaks down the orthogonality between subcarriers in OFDM communication system. Therefore, WFMT modulation scheme is studied and the effect of the carrier frequency offset and phase noise is analyzed. WFMT modulation scheme is based on the wavelet theory and complex filter banks for synthesis and analysis of multichannel signal. WFHT modulation scheme keeps on the advantage of filter banks system and can be easily possible for the implementation of filter banks. In this paper, we compare ISI and ICI distortions of the WFMT and OFDM system due to the carrier frequency offset and phase noise. Also, we analyze the PAPR and BER performances in the HPA and ICI situation caused by the Doppler frequency shift and the frequency offset.