A method of operation of a wireless communication system includes: tuning a receiver front end for receiving a radio-frequency signal; correcting, with an in-phase/quadrature (I/Q) compensation module, an I/Q imbalance from the receiver front end including estimating by a linear minimum mean-square error (LMMSE) module; and processing by a base band receiver for digitizing an output of the I/Q compensation module for generating a receiver data.