We propose an iterative detection scheme for Turbo-BLAST system with optimal power allocation in the presence of channel state information imperfection. The proposed scheme uses the channel estimation matrix for detection and treats the interference caused by channel estimation errors and additive white Gaussian noise as equivalent noise where the channel estimation matrix and the statistical characteristic of channel estimation errors are necessitated. Simulation results show the proposed algorithm is effective to improve bit error rate (BER) performance through iterative detection for modified Turbo-BLAST system with optimal power allocation in the presence of imperfect channel state information.