We propose and study an iterative sparse reconstruction for Fourier domain optical coherence tomography (FD OCT) image by solving a constrained optimization problem that minimizes L-1 norm. Our method takes the spectral shape of the OCT light source into consideration in the iterative image reconstruction procedure that allows deconvolution of the axial point spread function from the blurred image during reconstruction rather than after reconstruction. By minimizing the L-1 norm, the axial resolution and the signal to noise ratio of image can both be enhanced. The effectiveness of our method is validated using numerical simulation and experiment.