A system and method are disclosed for transient detection and modification in audio signals. Digital signal processing techniques are used to detect transients and modify an audio signal to enhance or suppress such transients, as desired. A transient audio event is detected in a first portion of the audio signal. A graded response to the detected transient audio event is determined. The first portion of the audio signal is modified in accordance with the graded response. The extent of enhancement or suppression (as applicable) may be determined at least in part by a measure of the significance or magnitude of the transient.