A method and apparatus for compensating a modulation imbalance effect in a communication device. In one embodiment, at least three sets of modulation imbalance parameters (MIPs) are estimated by executing an auto balance sequence. The at least three sets of MIPs correspond to a baseband signal configured to have at least three configurable frequencies, each of the at least three sets of MIPs corresponds to one of at least three configurable frequencies. The auto balance sequence is configured to provide an offset signal generated within a communication device to trigger generation of each one of the at least three configurable frequencies. The at least three sets of MIPs are filtered to select a filtered set. The modulation imbalance effect is compensated by using the filtered set to reduce distortion of the baseband signal in the communication device.