Ultra‐wideband (UWB) system is one of the possible solutions to future short‐range indoor data communications with large frequency bandwidth. However, it must coexist with other narrowband wireless systems that may cause interference to each other, and furthermore a large bandwidth will inevitably result in multi‐path fading. The Rake receiver is applicable to combat multi‐path fading but its performance degrades greatly when the narrowband interference (NBI) is present. Although some optimized Rake receivers were proposed to suppress the NBI, such as the minimum mean square error (MMSE) one, their computational complexities are usually too high to be practically implemented. In this paper, we present a new adaptive Rake receiver which can effectively suppress the NBI, based on the nonlinear Masreliez‐type approximate conditional mean (ACM) technique. Simulation results show that it outperforms the previous schemes and even it achieves almost the same performance as that of a MMSE Rake receiver but with much lower complexity. Copyright © 2010 John Wiley & Sons, Ltd.