An echo cancellation circuit in a full duplex two-way communication system comprising: an input/output terminal; a subtractor having a positive and a negative input terminals, in which a first transmission signal is inputted to the negative input terminal as a pseudo echo signal, the first transmission signal is inputted through an output buffer to the positive input terminal as an echo signal, the pseudo echo signal inputted to the negative input terminal is subtracted from the echo signal inputted to the positive input terminal; and a result of the subtraction is outputted; and an echo cancellation error reducing unit having a D/A converter at an input side or an output side of the subtractor.