A method and circuit for adaptively estimating channel conditions of a pilot channel in a wireless communication system. The method includes estimating channel statistics of the pilot channel, and adaptively filtering the pilot channel in response to the estimated channel statistics. The estimation is performed by filtering a channel signal derived from the pilot channel to determine an estimated channel mean and an estimated channel covariance. In order to perform the adaptive filtering, the present invention partitions the pilot channel into one or more time slots and weights each time slot according to the channel statistics. Thus, an advantage of the present invention is that it automatically and continually updates the pilot filter parameters in order to optimize the pilot filter performance over a broad range of channel conditions.