This paper presents a new technique of interpolation for channel estimation in OFDM (Orthogonal Frequency Division Multiplexing) system based on a pilot signal through wavelet shrinkage denoising. Channel estimation for OFDM system is generally carried out by transmitting known pilot symbols in given positions of the frequency-time grid. Using interpolation methods the channel can be estimated from the coefficients extracted of those pilots. The proposed interpolation is an improved method for successive data schism and interpolation. This interpolation based on mean and variance to calculate the interpolated points between two known points. Simulation results show that the proposed interpolation can be controlled by P and ; factor for the mean and variance respectively. Simulation results shows that the OFDM system over Wavelet de-noising filter will increase the performance of the system by 3-4 dB.