A system and method for reducing or entirely canceling background or ambient noise from a voice transmission from a communications device. A communications device, such as a mobile telephone, is configured with an ambient noise compensation signal generator that is connected between a microphone and a mixer. The original output of the microphone and a compensation signal generated by the ambient noise compensation signal generator are mixed together prior to being passed to a transmitter. In one embodiment a buffer is provided between the microphone and the mixer to help synchronize the timing of the signals to be mixed. In another embodiment a second microphone is employed to detect ambient noise.