The present invention provides a method and system for managing co-channel interference on a traffic channel. In one embodiment, a serving cell provides a list of scrambling codes associated with a plurality of neighboring cells to user equipment currently being served by the serving cell. The user equipment receives a scrambling code transmitted by at least one neighboring cell on a traffic channel in a search frame. The user equipment descrambles the received scrambling code and evaluates signal strength of the at least one neighboring cell based on the output of the descrambled scrambling code. Then, the user equipment determines whether there is a co-channel interference from the at least one neighboring cell based on the evaluated signal strength, and wherein the at least one user equipment reporting existence of the co-channel interference from the at least one neighboring cell to a serving cell.