A digital PWM modulator modulates a digital input signal to drive a PWM signal to a PWM DAC susceptible to introducing inter-symbol interference (ISI) in small PWM edge separation presence causing audio THDN degradation. A multi-bit quantizer switches from a first to second mode when the input signal rises above a threshold. The quantizer quantizes the input signal into a quantized output signal, each sample of which has a code selected from respective first and second quantization code sets. The second set, relative to the first set, causes the digital PWM signal to have increased edge separation to reduce the ISI at high input levels. The first set includes small magnitude codes relative to the second set to reduce quantization noise at low input levels. The threshold is sufficiently low to cause the quantized output signal to be dominated by small codes when operating in the first mode.