A free-space adaptive optical laser communication system having signal transmission and reception channels at all terminals in the communication system, wherein wavefront sensing (WFS) and wavefront correction mechanisms are employed along signal transmission and reception channels of all terminals in the communication system (i.e. adaptive optics) to improve the condition of the laser beam at the receiver (i.e. reduce the size of the spot a the detector plane). in the illustrative embodiment, the WFS mechanisms employ a novel WFS control process, in which active updating of reference positions and subaperture locations on the wavefront sensor. These WFS mechanism can be used in diverse application environments, including but not limited to FSO laser communication systems.