A linear iterative turbo equalizer (LITE) with code aided scheme is presented to be employed in a fading channels. A method is proposed for exploiting transmittal diversity within a parallel independent fading channel together with an iterative equalizing receiver. The structure of the equalizer combines LITE, encoding, decoding interleaving, and de-interleaving schemes. The code-aided LITE employs encoding and interleaving at the transmitter and passes a priori information on the transmitted symbols between decode outputs at the receiver. The performance of a code-aided LITE is evaluated by means of computer simulation. It shows the proposed code-aided equalizer functions benefits a better system performance in the fading channel.