The invention discloses a carrier synchronization system and a method of combining pilot frequency and iterative decoding. The system comprises a Turbo coding module, a multiplex module, a modulation module, a carrier estimation module, a demodulation module and an extension Turbo decoding module. The method includes the steps of receiving sequences, initial estimation, correcting signals, quadrature phase shift keying (QPSK) demodulation, data demultiplexing, Turbo decoding, hard decision, decoding termination conditions, data multiplexing, QPSK modulation and fine estimation. The carrier synchronization system and the method of the combining the pilot frequency and the iterative decoding have the advantages that the defect that in prior art, the frequency estimation accuracy is low caused by the fact that pilot frequency with the same number and maximum likelihood algorithm are utilized is overcome, the carrier frequency estimation accuracy is improved, simultaneously the disadvantage that in prior art, the output of a Turbo decoder is required to be recoded or subjected to nonlinear transformation is overcome, and the algorithm complexity of combining Turbo decoding and carrier synchronization process is reduced.