An automatic gain control (AGC) for a Satellite Digital Audio Radio Service (SDARS) receiver, a method of automatically controlling gain and a SDARS receiver incorporating the AGC or the method. In one embodiment, the AGC includes: (1) an AGC function selector configured to compare first and second time division multiplexed (TDM) power signals and a nonzero threshold and select an AGC function based thereon and (2) an AGC function applier associated with the AGC function selector and configured to apply the AGC function to the first and second TDM power signals to develop therefrom an AGC control signal.