A wireless communication system may include first and second wireless communications devices communicating with one another via a wireless communications link having a settable link characteristic. The first and second wireless communications devices may include respective first and second wireless transceivers and respective first and second controllers coupled thereto. The first controller may be for detecting received interference, for determining a type of the interference from among interference types comprising wideband interference and narrowband interference, and for setting the settable link characteristic to compensate for the interference based upon the interference type.