This paper presents a polyphase filtered orthogonal frequency division multiplexing (PF-OFDM) technique. The proposed structure uses a modified discrete Fourier transform (MDFT) transmultiplexer to achieve greater spectral efficiency than an OFDM system, while preserving backward compatibility with it. The prototype PF-OFDM filter has excellent time and frequency localization properties, which matte it possible to eliminate a guard interval (or cyclic prefix) and easily suppress interchannel interference (ICI). This modulation technique uses a single DFT structure, in contrast to a MDFT transmultiplexer, which requires two DFT polyphase filter banks. The PF-OFDM modulation is .justified over multipath Rayleigh fading channels.