Method and apparatus for maximizing the usable bandwidth for High Performance 1553 terminals operating concurrently on the same physical bus with legacy 1 Mb/s MIL-STD-1553 terminals. More specifically, the method and apparatus provides implementation for predictive cancellation by synthesizing an estimate of the 1 Mb/s MIL-STD-1553 component of a composite 1 Mb/s plus High Performance 1553 input signal using either of two different techniques: (1) a combination of digital and analog techniques; and (2) an all digital technique. The synthesized signal is then subtracted from the composite signal. Both techniques employ an algorithm for minimizing the effects of clock skew between 1 Mb/s 1553 transmitting clocks and the local High Performance 1553 sampling clock. Both techniques also incorporate an adaptation algorithm for developing and maintaining digital models of 1 Mb/s 1553 signals received from multiple 1 Mb/s 1553 terminals on a bus.