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Multiple Input Multiple Output (MIMO) system with orthogonal frequency division multiplexing (OFDM) is a promising physical layer candidate for the current and future wireless standards. MIMO increases system throughput while OFDM maximizes spectrum efficiency. To reduce the impacts of frequency selective fading and increase the capacity, MIMO requires precise channel state information (CSI). The presence of carrier frequency offset (CFO) introduces intercarrier interference (ICI) among the subcarriers which degrades the system performance. MIMO channel estimation is done under the assumption of perfect frequency synchronisation between the transmitter and receiver, or zero CFO. However, such an assumption is incorrect for time-varying and frequency-selective wireless channels, and the presence of CFO has an impact on channel estimation accuracy. In the existing methods, CFO and channel estimations are carried out independently using separate training sequences which reduces the spectral efficiency. As a result, the pilot aided interpolation approach is proposed in this paper for the joint estimate and compensation of CFO and channel effects using the same set of pilot tones. Theresults show that the proposed method offers precise CFO and channel estimation which improves the bit error rate performance and carrier to interference power ratio (CIR) of MIMO-OFDM system. [ABSTRACT FROM AUTHOR]