An alternative to the use of higher order Quadrature Amplitude Modulation (QAM) that shows strong variations of output amplitude is the use of higher order Phase Shift Keying (PSK). The bit error probability of higher order PSK is sensitive to phase distortion that is caused by propagation delay and Doppler frequency estimation errors. Phase Updating Loop (PUL) is a generalization of a Phase Locked Loop (PLL) that can estimate the delay and the Doppler accurately. In order to realize a higher order PSK, we recently proposed a delay-Doppler Space Division Multiplexing (dD-SDM) method in which a parameter space consisting of delay and Doppler is partitioned into several subspaces and each subspace has its assigned signature codes. In this paper, digital PUL is defined. Simulation results show that by the use of the dDSDM method together with digital PUL we can successfully demodulate 256PSK data.