Abstract-Co-frequency interference problem is severe in sharedspectrum multistatic radar system, leading to detection problems in applications. In order to mitigate the co-frequency interferences, an adaptive pulse compression algorithm based on Maximum Signal Minus Interference Level criterion (MSMIL) is proposed in this paper, the main idea of which is to adaptively design an appropriate filter at each range cell, maximizing the result of signal power minus interference power, so that both range sidelobes and cross-correlation interference can be suppressed. Simulation results show that the algorithm outperforms the traditional multistatic adaptive pulse compression (MAPC) method in interference suppression. Compared with MAPC method, after one iteration step, the output SIR of the proposed algorithm is increased by about 10 dB. And after two iteration steps, it is increased by more than 40 dB. Moreover, it also outperforms the MAPC in convergence speed.