In this thesis, a novel adaptive subcarrier allocation algorithm is developed for OFCDM. This algorithm utilizes groups of evenly spaced, non-contiguous subcarriers throughout the spectrum. The users are allocated to subcarriers groups with the intention of minimizing the overall BER. This is accomplished by assigning a user to the set of subcarriers that provides the best Signal to Interfenence and Noise Ratio (SINR), while producing the least amount of interference to other users accessing the same subcarrier group. The expected interference produced by this user is then utilized to recalculate the SINR for the subcarrier goup, and the allocation process continues recursively until all users are assigned to subcarriers. The proposed alogrithm is shown to provide a performance improvement ranging from 1.5dB with 2x16 spreading, 7dB with 16x2 spreading. The algorithm is also shown to maintain or improve the BER floor for each OFCDM spreading configuration.