The concept of adaptivity is of paramount importance in the design of future communication systems, in which a careful exploitation of the limited available resources (bandwidth, power, etc.) is required. The potential of channel‐adaptive transmission has been already recognized 30 years ago, but it did not receive much interest at that time. In the last decade, the advent of feasible software radio systems, and hence, the availability of fast flexible and reconfigurable transceivers has renewed interest in adaptive techniques, which include adaptive modulation and coding, adaptive antennas and adaptive equalization techniques. This paper focuses on adaptive modulation and adaptive error control mechanisms. Basic concepts are highlighted and an overview on the achieved results and new trends in this research area are presented. Some results from information theory are also presented, which show the limitations of these techniques and motivate further research on the practical and design issues that have to be addressed to enable performance to reach close to the theoretical limit. Copyright © 2002 John Wiley & Sons, Ltd.