The power-delay profile (PDP) estimation of wireless channels is an important step to generate a channel correlation matrix for channel linear minimum mean square error (LMMSE) estimation. Estimated channel frequency response can be used to obtain time dispersion characteristics that can be exploited by adaptive orthogonal frequency division multiplexing (OFDM) systems. In this paper, a joint estimator for PDP and LMMSE channel estimation is proposed. For LMMSE channel estimation, we apply a candidate set of frequency-domain channel correlation functions (CCF) and select the one that best matches the current channel to construct the channel correlation matrix. The initial candidate set is generated based on the traditional CCF calculation method for different scenarios. Then, the result of channel estimation is used as an input for the PDP estimation whereas the estimated PDP is further used to update the candidate channel correlation matrix. The enhancement of LMMSE channel estimation and PDP estimation can be achieved by the iterative joint estimation procedure. Analysis and simulation results show that in different communication scenarios, the PDP estimation error of the proposed method can approach the Cramér-Rao lower bound (CRLB) after a finite number of iterations. Moreover, the mean square error of channel estimation is close to the performance of accurate PDP-assisted LMMSE.