Abstract: A spread spectrum communications system resistant to multipath due to differential delays equal to or less than a chip width. At the transmitter, a pseudonoise sequence is combined with data for transmission purposes and the result of that combining operation is then encoded. Manchester encoding or differential encoding are described. At the receiver, a differential demodulator is used with a delay of either a one-half chip width or a full chip width. In the receiver embodiment employing a one-half chip width delay, a notch filter is used at the output of the demodulator with a notch located at a frequency corresponding to the chip rate. The output of the notch filter is then input to a low pass filter. The output of the low pass filter is a base band signal which can be applied to a correlator to extract the original digital data. For the receiver embodiment which employs a full chip width delay, the output of the demodulator is applied to a low pass filter.