In this paper, we analyze the effects of interference canceller on the performance of multitone DS/CDMA system proposed by Vandendorpe[5]. There are various kinds of interference canceller suggested by different researchers including parallel and successive cancellers and we adopt a canceller used by Yoon et al.[9] which is a kind of parallel canceller. We consider three kinds of interferences, that is, multipath interference(MPI), interchannel interference(ICI) and multiple access interference(MAI). The ICI is the interference between multitones. The equations for variances. are derived for the inteferences and thermal noise used for signal to noise ratio calculation. We also consider RAKE reception over multipath channel which is modeled as lowpass equivalent linear filter and three stage interference canceller used for performance improvement. We show the performance results for number of canceller stage, diversity order and number of users and draw some conclusions that interference canceller is effective in multitone DS/CDMA system and the performance is further improved with the higher order of diversity and larger number of PN chips.