In this paper, trellis-coded M-ary CPFSK with noncoherent envelope detection and adaptive channel equalization are investigated to improve the bit error rate (BER) performance of microcellular digital wireless communications systems. For the same spectral efficiency, the trellis-coded modulation (TCM) schemes studied outperform minimum shift keying (MSK) with noncoherent or differentially coherent detection in Rayleigh fading channels. For the case of frequency-selective fading channels, adaptive channel equalization is applied to mitigate the time-variant intersymbol interference (ISI). A new equalizer structure is proposed which, in its feedback path, makes use of fractionally spaced signal samples instead of symbol-spaced hard decisions on transmitted symbols. Computer simulation results indicate that the soft-decision feedback equalizer (SDFE) can significantly improve the system's performance.