We propose to apply chip interleaving and iterative detection to self-encoded multiple access (SEMA) communications. In SEMA, the spreading code is obtained from user bit information itself without using a pseudo noise code generator. The proposed scheme exploits the inherent diversity in self encoded spread spectrum signals. Chip interleaving not only increases the diversity gain, but also enhances the performance of iterative detection. We employ user-mask and interference cancellation to decouple self-encoded multiuser signals. This paper describes the proposed scheme and analyzes its performance. The analytical and simulation results show that the proposed system can achieve a 3 dB power gain and possess a diversity gain that can yield a significant performance improvement in both Rayleigh and multipath fading channels.