A receiver architecture and a digital IQ imbalance compensation method for dual-carrier reception are newly proposed. The impact of IQ imbalance on the baseband signal is mathematically analyzed. Based on the analysis, IQ imbalance parameters are estimated and the coupling effect of IQ imbalance is compensated using digital baseband processing alone. Simulation results show that the proposed IQ imbalance compensation successfully removes IQ imbalance. The deviation from the ideal performance is less than 1 dB when it is applied to the 3GPP-LTE carrier aggregation.