Abstract: A Two-Stage Hybrid algorithm offers significant improvement in the false alarm rate and detection performance of Space-Time Adaptive Processing in non-homogeneous environments for both radar and digital communications. The first stage analyzes data from a range cell of interest by direct data domain processing, suppressing discrete interferers within the range cell of interest. The second stage implements a purely statistical STAP algorithm, preferably an enhanced version of the Joint-Domain Localized (“JDL”) statistical algorithm. For radar this second stage estimates the interference within the range cell of interest from the surrounding range cells. For a communications system, the second stage estimates the covariance matrix of the interference from the entire data block. For both radar and communications, an adaptive filter that suppresses the interference is generated from the estimate by second-order statistics.