Adaptive delta modulation is a technique that makes the step size adaptive to variations in the input signal in order to overcome quantization errors from slope overload and granular noise. It works by increasing the step size in sections of the signal where it is changing rapidly and decreasing it where the signal is changing slowly. The transmitter uses adaptive logic to continuously or discretely change the step size based on the one-bit quantizer output. The receiver reproduces the step size and uses an accumulator and low-pass filter to reconstruct the original signal from the transmitted bit sequence and adaptively changing step sizes. Adaptive delta modulation provides better signal-to-noise ratio, wider dynamic range, and more efficient bandwidth utilization than regular delta modulation.