The invention relates to a method for controlling transmission power in a radio system, preferably in a radio link system. To establish a power control mechanism which is capable of taking into account the various phenomena affecting the performance of the radio connection and which can also respond to degrading signal quality before bit errors begin to occur, pseudo errors, i.e. decision-making instants at which a symbol error nearly occurred, are monitored at the receiving end. The transmission power is then decreased when the rate of the pseudo errors is below a predetermined threshold and increased when pseudo errors occur so that a predetermined criterion is fulfilled.