Abstract: A novel method of enhancing power amplifier linearity is disclosed. The invention is for use within a transceiver system and provides a method in the digital domain for predistorting a digital modulated signal to compensate for the non-linearity properties of the power amplifier and other components within the transmitter system. The RF output signal of the transmitter circuit is sampled and the corresponding amplitude and phase are detected using a receiver circuit. In dependence upon the amplitude and phase information, a look-up table is indexed to select the predistortion data and predistortion of the digital modulated signal occurs within the predistortion circuit.