In this paper, a new approach to estimate nonmlinear distortions (second-harmonic, second-intermodulation, third-harmonic, and third-intermodulation) in digital communication systems is proposed. In contrast to the relatively common sine-wave input approach which requires repetition of the same experiments by changing frequencies of oscillators and filters over the band of frequencies of interest, the proposed approach uses digital random input (transmitted signal in digital communication system) to adaptively estimate parameters of a nonlinear channel in time-domain. Nonlinear distortion of the channel is estimated on line by transforming the estimated parameters into frequency-domain. Comparison between the classical two-tone input approach and the proposed approach is made through computer simulation.