Methods and systems are disclosed for frequency-domain carrier blanking in multi-carrier communication systems. When excessive energy is detected in one or more subcarriers within a received symbol for multi-carrier communications, those subcarriers are blanked for subsequent demodulation in order to avoid corruption of the demodulated data. A conversion from time-domain digital samples to frequency-domain values using an FFT (Fast Fourier Transform) and a threshold detector are utilized to detect corrupted subcarriers. Further, this frequency-domain carrier blanking can be implemented dynamically on a symbol-by-symbol basis to further improve demodulation performance by reducing decoding errors. The disclosed embodiments are particularly useful for improving demodulation performance in power line communication (PLC) systems.