This invention presents a method and apparatus for vertical layered finite alphabet iterative decoding of low-density parity-check codes (LDPC) which operate on parity check matrices that consist of blocks of sub-matrices. The iterative decoding involves passing messages between variable nodes and check nodes of the Tanner graph that associated with one or more sub-matrices constitute decoding blocks, and the messages belong to a finite alphabet. Various embodiments for the method and apparatus of the invention are presented that can achieve very high throughputs with low hardware resource usage and power.