A Voice Activity Detection (VAD) algorithm provides a simple binary signal indicating the presence or absence of speech in a microphone signal. The VAD algorithm includes a first step of noise suppression which both estimates and removes (i.e., filters) ambient noise from the microphone signal to create a filtered signal. The magnitude of the filtered signal is then compared to a threshold in order to produce a VAD output signal. The threshold is dynamic and may be derived either from the filtered signal itself, or from a noise spectrum estimate calculated by the noise suppression step.