Aspects of a method and system for mitigating receiver saturation during simultaneous FM transmission and reception may include detecting a power of an RF signal received at an antenna. A power of one or more baseband signal components corresponding to the RF signal may be determined. A power of signals transmitted via the antenna may be controlled, based on a cost function derived from at least the detected RF signal power received and/or the determined power of the one or more baseband signal components. One or more of the baseband signal components may be an in-phase signal, a quadrature signal or both an in-phase signal and a quadrature signal associated with a same carrier frequency. In one embodiment of the invention, the radio frequency signal may be an intermediate frequency (IF) radio signal.