This paper proposes a Modified Minimum Mean Square Error (M-MMSE) estimator for an Orthogonal Frequency Division Multiplexing (OFDM) System over fast fading Rayleigh channel. The proposed M-MMSE estimator considered the effects of the efficient placement of pilots based on the channel energy distribution. The pilot symbols were placed in a non-linear manner according to the density of the channel energy. Comparative analysis of the MMSE estimator for a comb-type pilot arrangement and M-MMSE estimator for the proposed pilot insertion scheme revealed significant performance improvement of the M-MMSE estimator over the MMSE estimator.