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A method for optimal adaptive setting of pulse-positionmodulation pulse detection thresholds, which minimizes the total probability of error for the dynamically fading optical free space channel, is presented. The threshold's adaptive setting, in response to varying channel conditions, results in orders of magnitude improvement in probability of error, as compared to use of a fixed threshold. The adaptive threshold system itself is based on a robust channel identification system that usesdoi:10.1109/glocom.2001.965078 dblp:conf/globecom/MukaiAY01 fatcat:rxtpslwanvbsdhgdukw5yfcrwi