Techniques for performing adaptive channel estimation are described. A receiver derives channel estimates for a wireless channel based on received pilot symbols and at least one estimation parameter. The receiver updates the at least one estimation parameter based on the received pilot symbols. The at least one estimation parameter may be for an innovations representation model of the wireless channel and may be updated based on a cost function with costs defined by prediction errors. In one design, the receiver derives predicted pilot symbols based on the received pilot symbols and the at least one estimation parameter, determines prediction errors based on the received pilot symbols and the predicted pilot symbols, and further derives error gradients based on the prediction errors. The receiver then updates the at least one estimation parameter based on the error gradients and the prediction errors, e.g., if a stability test is satisfied.