The concept of antenna diversity has been widely employed to improve microwave receiver performance in a dynamic RF environment. Here, a new type of "smart" antenna has been developed, which utilizes two antenna elements. The final design represents a novel, integrated solution to two of the problems faced by mobile receivers as a result of multipath propagation: (1) information loss due to fading; (2) front end saturation due to unexpected peaks in received signal intensity. The nonlinear, analog, adaptive feedback controller at the heart of the system is described and analyzed, and the results of testing with the final RF prototype are presented.