Self-encoded spread spectrum (SESS) derives its spreading codes from the random information source rather than using traditional pseudo-random codes. It has been shown that the memory in SESS modulated signals not only can deliver a 3dB gain in additive white Gaussian noise (AWGN) channels, but also can be exploited to achieve time diversity and robust bit-error rate (BER) performance in fading channels. In this paper, we propose an extension to SESS, namely coded-sequence self-encoded spread spectrum (CS-SESS), and show that it can further improve the BER performance. We describe the CS-SESS scheme and present the theoretical analysis and simulation results for AWGN and fading channels. Iterative detector is developed to exploit the inherent temporal diversity of CS-SESS modulation. The simulation results show that it can achieve the expected 4.7dB gain with a complexity that increases linearly with the spreading sequence length under AWGN. In Rayleigh fading channel, it can effectively mitigate the fading effects by exploiting the overall diversity gain. Chip interleaving is shown to yield a performance improvement of around 4.7dB when compared to an chip interleaved direct sequence spread spectrum (DSSS) system.