The implementation of OFDM-based physical layers suffers the effect of In-phase and Quadrature-phase (I/Q) imbalances in the receiver end. The I/Q imbalances can severely limit the achievable operating SNR, the constellation sizes and data rates. In this thesis, the effect of I/Q imbalances in OFDM systems is studied and algorithms for compensating the imbalances are proposed. The algorithms include least-squares, LMS, and NLMS equalization schemes. Computer simulations show that LS and NLMS algorithms have better performance. Also, we discuss the I/Q imbalances under a time-varying channel with high Doppler shift (1000 Hz). The decision-directed equalizer and two scattered pilot tone arrangements are exploited for channel estimations Different interpolation algorithms are also discussed. For a given pilot density, we have a BER level of to . We have compared the performances for all schemes with QPSK and 16-QAM as modulation schemes. The results are given by computer simulations.