AbstractIn this letter a novel decorrelating detector for multicode system is proposed and analysed. Multicode transmission is an alternative technique for providing multirate data to multiple users. However, it suffers from an inter‐channel‐interference when the signal is transmitted over a multipath channel. The proposed receiver processes the received message in a symbol‐by‐symbol fashion, which reduces the computational complexity of the decorrelating receiver considerably comparing to the more traditional approach, where the full frame is processed at a time. Simulation results show that the performance improvement is substantial using the proposed receiver, e.g. the irreducible BER can be lowered as much as 2 orders of magnitude @ 20 dB. Copyright © 2009 John Wiley & Sons, Ltd.