A transceiver having quantization noise compensation is disclosed. The transceiver includes transmitter and receiver circuits. The transmitter is configured to receive and quantize a digital signal to generate a quantized signal. The quantized signal is then converted into an analog transmit signal and transmitted as a wireless signal. The receiver circuit is configured to receive a reflected version of the wireless signal and generate an analog receive signal based thereon. The analog receive signal is converted into a digital receive signal. Thereafter, the receiver cancels quantization noise from the digital receive signal to produce a digital output signal that can be utilized for further processing.