A digital FM stereo decoder uses the phase characteristics of linear phase FIR filters, together with a trignometric operation, to generate a 38 kHz subcarrier signal from a 19 kHz pilot. The subcarrier signal is mixed with the input composite signal from which the pilot has been removed to shift its L-R component to baseband; the linear phase FIR filters also maintain phase coherence between the subcarrier and the composite signals. A low distortion output is obtained without the use of a phase locked loop for the regeneration of the subcarrier signal.