An efficient trellis-based phase noise mitigation algorithm is proposed to highly improve the performance of coherent transmission systems, especially in high order modulation formats. The proposed method targets the coherent optical systems where the performance is limited by various sources of phase noise including laser line-width, fiber non-linearity, and phase noise induced by phase-locked loop. Considering hardware limitations of ultra-high data rate processing in optical systems, a hardware-efficient parallelized and pipelined architecture is utilized. Experimental results in 200 Gb/s DP-16QAM co-propagated with 10-G channels demonstrate significant performance improvement over other existing methods.