For clinical study and diagnosis, compression of Electro Cardio Gram (ECG) signal is a fundamental step for processing. However, the compression and reconstruction introduce errors in the signal. Therefore, error minimization is crucial before using these signals for analysis and diagnosis. This paper presents an efficient method to minimize the reconstruction error using the adaptive filtering technique. Better reconstruction was achieved based on higher value of Compression Ratio and lesser value of Percent Root mean squared difference. Daubechies Wavelet easily detects the signal spikes while keeping less error rate using Least Mean Squared Error algorithm. However, the percentage value of error appeared to be minimum when using Daubechies Wavelet because of its small coefficients other than Haar and Coiflet Wavelet. Therefore, it was concluded that Daubechies Wavelet should have been used for error minimization in the reconstructed signal.