Abstract: A system for processing inphase and quadrature data channels, such as a Costas loop QPSK demodulator, employs an additional feedback loop for adjustment of phase offset between carrier reference signals, this loop being in addition to the Costas error loop for control of frequency and phase of an oscillator which provides the regenerated carrier signal. The additional loop employs cross-channel products of demodulated inphase and quadrature data signals as does the Costas loop. The regenerated carrier is applied via an adjustable phase-offset unit to provide quadrature carrier reference signals to phase detectors of inphase and quadrature data channels. The phase offset unit includes a 90 degree hybrid circuit energized by the carrier signal at a main input port plus an adjustable fraction of the carrier power applied to an auxiliary input port.