The saturation compensating analog to digital converter has converter circuitry receiving an analog signal and outputting converted data. The converted data from the converter circuitry is processed and filtered to provide a digital data output. The digital data output is received into shift register circuitry before being transmitted for later-stage processing. When the converter circuitry is operating close to a saturated condition, a saturation detector generates a saturation signal. The saturation signal is received at a variable gain circuit which adjusts the gain of the input signal to the converter circuitry. The shift register circuitry also receives the saturation signal and provides an upshift of the digital data to compensate for the associated reduction in input gain provided by the variable gain circuit. In operation, the variable gain circuit is initially set to its maximum output, thus providing the maximum possible input signal to the converter. If a near-saturation conditional is detected, the variable gain circuit is stepped down, and the shift register circuitry provides an associated one bit step up. Such saturation compensation is continued to enable the converter circuitry to operate without saturating.