Adaptive Gain Control (AGC) is performed directly in a coded domain. A Coded Domain Adaptive Gain Control (CD-AGC) system modifies at least one parameter of a first encoded signal, resulting in corresponding modified parameter(s). The CD-VQE system replaces the parameter(s) of the first encoded signal with the modified parameter(s), resulting in a second encoded signal. In a decoded state, the second encoded signal approximates a target signal that is a function of two signals, including the first encoded signal and a third encoded signal, in at least a partially decoded states. Thus, the first encoded signal does not have to go through intermediate decode/re-encode processes, which can degrade overall speech quality. Computational resources required for a complete re-encoding are not needed. Overall delay of the system is minimized. The CD-AGC system can be used in any network in which signals are communicated in a coded domain, such as a Third Generation (3G) wireless network.