Adaptive version of the delta modulator that is akin to wyllabic companding for telephony is described. A digital technique is used to sense the slope of the input signal and to control the amplitude of the pulses supplied to the RC network in the feed back loop. Thus the development was stimulated by the suitability of delta modulator for low-cost integrated circuits. Analysis are made of the optimum overload characteristics, stability, SNR for improving the frequency range and these results have been esperimentally verfied.