Carrier frequency offset (CFO) due to Doppler frequency shift or frequency mismatch between the transmitter’s and receiver’s oscillators can introduce severe inter-symbol and inter-carrier interference into OFDM systems. A simplified OFDM system model is considered to analyze effects of CFO in theory and simulation. The article briefly reviews some traditional CFO estimation algorithms. Relying on relatively good correlation characteristic of pseudo-noise (PN) sequence, the PN preamble based algorithm of CFO estimation is developed. Performance characteristics of traditional and the new improved algorithms are simulated under different conditions. Results indicate that the PN preamble based algorithm of CFO estimation is more accurate, resource-saving and robust even under poor communications channel condition, such as low SNR and big normalized CFO.