A method and apparatus for optimizing target error rates for link adaptation in a communication system. The method includes estimating a data rate associated with transmission of a data stream over a communication link. A required target error rate is then selected from a plurality of pre-defined target error rate values based on whether the estimated data rate is within a range of at least one of a plurality of pre-defined threshold values, where each of the pre-defined target error rate values maps to one of the plurality of pre-defined threshold values. A link adaptation parameter associated with the communication link is then selected or updated to maintain the required target error rate and the data stream is transmitted over the communication link using the selected/updated link adaptation parameter.