Orthogonal frequency division multiplexing (OFDM) system which provides high spectral efficiency has obvious advantages in robustness against the multipath delay spread and the fading channel. One of the major disadvantages of such a multi-carrier modulated system is the sensitivity of its performance to synchronization error, such as phase noise and frequency offset. Phase noise is caused by the mismatch between the transmitter and the receiver oscillators. Phase noise in an OFDM system can destroy the orthogonality of the subcarriers and cause inter-carrier interference (ICI). Phase noise resulting in common phase error (CPE) and Inter-Carrier Interference is a critical challenge to the implementation of OFDM systems. In this paper, the phase noise effects of the IEEE 802.16e OFDMA systems are compensated. The practical cluster-based method which is used to estimate either the CPE or the ICI coefficients in the fading channel and compensate the effects of phase error is also proposed. Numerical results demonstrate that the proposed algorithm can effectively improve the performance caused by phase noise.