Abstract-We present a speech enhancement algorithm that performs modulation-domain Kalman filtering to track the speech phase using circular statistics, along with the log-spectra of speech and noise. In the proposed algorithm, the speech phase posterior is used to create an enhanced speech phase spectrum for the signal reconstruction of speech. The Kalman filter prediction step separately models the temporal inter-frame correlation of the speech and noise spectral log-amplitudes and of the speech phase, while the Kalman filter update step models their nonlinear relations under the assumption that speech and noise add in the complex short-time Fourier transform domain. The phasesensitive enhancement algorithm is evaluated with speech quality and intelligibility metrics, using a variety of noise types over a range of SNRs. Instrumental measures predict that tracking the speech log-spectrum and phase with modulation-domain Kalman filtering leads to consistent improvements in speech quality, over both conventional enhancement algorithms and other algorithms that perform modulation-domain Kalman filtering.