Abstract: A method of two-way relay channel (TWRC) estimation based on compressive sensing (CS) is designed in this paper. We specifically introduce the orthogonal matching pursuit (OMP) algorithm to reconstruct the channel impulse response under the OFDM system. Two-way relay channels tend to exhibit sparse multipath structure, and this structure will be more conspicuous when the dimension of signal space is increasing. Traditional linear estimation methods are incapable of exploiting the potential sparsity of two-way relay channels, thus leading to excessive use of critical communication resources. On the contrary, the method of two-way relay channel estimation based on compressive sensing can fully exploit the sparse multipath structure of this kind transmission channel. By contrast to traditional linear estimation methods, the method of TWRC based on CS needs much less training sequence under the same estimation performance. As a result, the introduced method effectively improves the utilization of communication resources such as spectrum and energy. At the same time, the computational efficiency of the introduced OMP algorithm is always higher than traditional methods as its computational complexity mainly relies on the sparse degree of multipath channels. Simulation results confirm the method of TWRC estimation based on CS.