The invention relates to interference cancellation in a cellular CDMA network served by base stations. The method of the invention comprises receiving in a mobile station (MS) a CDMA signal transmitted by at least one base station (BTS2) of a neighbouring cell (B) in the network and defining the phase of the spread spectrum code of the signal transmitted by said at least one neighbouring base station (BTS2) and monitoring its signal strength. After this, the measurement results of the mobile station (MS) are transmitted via the base station which is serving it to the CDMA network which infers whether the mobile station interferes with the base stations (BTS2) of the neighbouring cells. If interference occurs, the neighbouring cell base stations (BTS2) are informed of the channel the interfering mobile station (MS) is using, and the information of the signal transmitted by the interfering mobile station (MS) is utilized by taking it into account in the receivers of signals transmitted by other mobile stations within the cell.