A downstream adaptive modulation system and method. The downstream adaptive modulation system comprises a wireless access termination system and one or more wireless modems. The wireless access termination system includes a plurality of queues and a parser. The parser parses data traffic onto the plurality of queues. Each queue is associated with a different coding and modulation scheme. Each of the one or more wireless modems receives data traffic from the plurality of queues based on the wireless modem's ability to demodulate and decode the signal from each of the plurality of queues. When a wireless modem experiences a change in signal strength, the present invention enables the wireless modem to adapt to data from other queues to compensate for the change in signal strength. Thus, if the signal strength improves over a period of time, the wireless modem may receive data at a higher order modulation and FEC code rate. If the signal strength weakens over a period of time, the wireless modem may receive data at a lower order modulation and FEC code rate.