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In this paper, linear prediction-based decision-feedback differential detection (DF-DD) for M-ary differential phase-shift keying (MDPSK) signals transmitted over Ricean fading channels is proposed. This scheme can improve conventional DD significantly for a multitude of frequency-nonselective channels, as shown analytically and by computer simulations. Prediction-based DF-DD is particularly well suited for application in mobile communications since the predictor coefficients may be updated regularly using the recursive least squares (RLS) algorithm. Here, adaptation can start blind, i.e., no training sequence and no a prior knowledge about the channel statistics are required. A further important characteristic of the proposed detection scheme is that no degradation occurs under frequency offset. The bit error rate (BER) performance of QDPSK with genie-aided prediction-based DF-DD is analyzed, and it is shown under which conditions the irreducible error floor of conventional DD can be removed entirely. In addition, the influence of Doppler shift is discussed. Last, the proposed scheme is compared with a second DF-DD scheme, which is based on multiple-symbol detection.