A system and method for signal mismatch compensation in a wireless receiver is disclosed. The method includes receiving an in-phase (I) signal and a quadrature (Q) signal corresponding to the I signal, the Q signal having an ideal phase offset of 90 degrees from the I signal, where there is a phase and gain mismatch between the I signal and Q signal. The method adjusts the phase offset between the I signal and the Q signal to minimize the IQ power, where the IQ power is the average-time power of a digital baseband in-phase (DB-I) signal and a digital baseband quadrature (DB-Q) signal, corresponding to the I signal and Q signal, respectively. The method adjusts the gain of the Q signal to minimize the IQ power, whereby the phase and gain mismatch between the I signal and Q signal is minimized.