The stage 3/2 decoding scheme, originally suggested by U. Timor, is modified for a Rayleigh fading channel to improve the performance of a fast frequency-hopped multiple access/multilevel frequency shift keying system. When signal-to-noise ratio per bit is 30 dB, the simulation results show that the modified stage 3/2 decoding scheme increases the spectral efficiency by 11% compared to the modified stage 1 decoding scheme at bit error rate of 10-3. Further, the performance comparisons are made between the modified multistage decoding scheme and the diversity combining methods, where the modified stage 3/2 decoding scheme shows better performance.