The channel noise in OFDM systems affects the accuracy of channel estimation, deteriorating the performance of equalization. We present a novel algorithm with MMSE (Minimum Mean Square Error) channel estimation based on Hadamard Transform, to mitigate the effects of noise. The performance of the proposed algorithm is proved to be better than that with LS (Least Square) estimation, and very close to that with the MMSE estimation based on Fourier Transform, while the computation required is pretty small due to the use of Hadamard Transform.