A system and method used for controlling an attenuator in a two-way communication device (100, 200) includes the steps of measuring (211) a relative signal strength indication (RSSI) at the input of the two-way communications device. The RSSI measurement is then compared (213, 217, 223) to both at least one predetermined interference threshold value (T1, T2, T3) and a selective squelch state (219, 225) for determining whether to switch an in-line attenuator to the input of the two-way communications device. The invention provides a method by which an attenuator may be used only when interference is present without it being continually switched in-line to cause signal degradation.