An apparatus and method for providing adaptive error correction for a fax and/or modem over packet network session is disclosed. A gateway device configured in accordance with the present invention comprises a controller configured to receive a signal from its local client device and a signal processor coupled to said controller. The signal processor encodes the signal based on a level of error correction selected by the controller. The controller is configured to determine a mode of operation of the local client device from the signal, and then select a level of error correction used by the signal processor to encode the signal based on the determined mode of operation of the local client device.