Integrated sensing and communication (ISAC), with sensing and communication sharing the same wireless resources and hardware, has the advantages of high spectrum efficiency and low hardware cost, which is regarded as one of the key technologies of the fifth generation advanced (5G-A) and sixth generation (6G) mobile communication systems. ISAC has the potential to be applied in the intelligent applications requiring both communication and high accurate sensing capabilities. The fundamental challenges of ISAC system are the ISAC signal design and ISAC signal processing. However, the existing ISAC signal has low anti-noise capability. And the existing ISAC signal processing algorithms have the disadvantages of quantization errors and high complexity, resulting in large energy consumption. In this paper, phase coding is applied in ISAC signal design to improve the anti-noise performance of ISAC signal. Then, the effect of phase coding method on improving the sensing accuracy is analyzed. In order to improve the sensing accuracy with low-complexity algorithm, the iterative ISAC signal processing methods are proposed. The proposed methods improve the sensing accuracy with low computational complexity, realizing energy efficient ISAC signal processing. Taking the scenarios of short distance and long distance sensing into account, the iterative two-dimensional (2D) fast Fourier transform (FFT) and iterative cyclic cross-correlation (CC) methods are proposed, respectively, realizing high sensing accuracy and low computational complexity. Finally, the feasibility of the proposed ISAC signal processing methods are verified by simulation results.