A system and method for adaptively removing feedback in audio systems and, more particularly, hearing aid systems. The audio system comprises an analysis unit, for receiving an input signal and providing N bandpass input signals, and an adaptive feedback cancellation unit for removing a feedback condition in one or more of the N bandpass input signals. The adaptive feedback cancellation unit comprises N sub-units with at least one of the sub-units including: (i) a feedback detector for indicating the presence of the feedback condition in one of the bandpass input signals, (ii) an adaptive feedback canceller for providing an adaptive gain modification factor for adjusting gain when the feedback condition is detected within one of the bandpass input signals, and (iii) a multiplier coupled to the adaptive feedback canceller and the analysis unit for providing a bandpass output signal based on one of the bandpass input signals and the corresponding adaptive gain modification factor.