In this study, the authors develop a pilot assignment algorithm to alleviate the effect of pilot contamination over time‐varying channels. They study the effect of correlated channel states over consecutive blocks under different Doppler frequencies using a moving‐average channel estimation process. They show that it is possible to mitigate the pilot contamination problem by assigning pilot hopping sequences such that each user experiences different contaminating users across time. The proposed algorithm has the advantage that it does not require the cooperation between the base stations, is robust to the channel time‐variations and can significantly increase the spectral efficiency compared to existing algorithms as shown in the simulation results.