This paper presents a compiler algorithm that automatically detects the appropriate loop indices of a given nested loop and applies loop interchange and tiling in order to overlap communication with computation. It also describes method of generating communication for the tiled loop on distributed memory machines. The algorithm presented here has been implemented in our High Performance Fortran (HPF) compiler, and experimental results have shown its effectiveness on the RISC System/6000 Scalable POWERparallel System.