A demodulation circuit for an Amplitude Shift Keyed (ASK) modulated signal includes an envelope detector, an alternating voltage amplifier, a differentiator circuit, and a comparator having a hysteresis connected in series. The envelope detector produces an envelope signal from the received ASK signal. The amplifier blocks the DC component of the envelope signal and amplifies AC components of the envelope signal to obtain a steeper slope of the rising and falling edges. The differentiator circuit then processes the transition edges to provide a differentiated signal having positive and negative electrical pulses. The comparator converts the pulses into a binary data stream which corresponds to the transmitted data stream. The combination of the differentiated signal and comparator having a hysteresis enables better stability and sensitivity of the ASK demodulation circuit.