An iterative transmit power allocation (PA) algorithm was proposed for group-wise space-time block coding (G-STBC) systems with group-wise successive interference cancellation (GSIC) receivers. Group-wise interference suppression (GIS) filters are employed to separate each group’s transmit signals from other interferences and noise. While the total power on all transmit symbols is constrained, all transmit PA coefficients are updated jointly according to the channel information at each iteration. Through PA, each detection symbol has the same post-detection signal to interference-and-noise ratio (SINR). The simulation results verify that the proposed PA algorithm converges at the equilibrium quickly after few iterations, and it achieves much lower bit error rates than the previous single symbol SIC PA and the fixed ratio PA algorithms for G-STBC systems with GSIC receivers .