Abstract Mud Pulse Telemetry systems in drilling operations have enabled the industry to gather valuable directional and formation data while drilling the well, and to optimize the drilling process. This makes drilling operations more cost efficient and allows the drilling of complex wells. In recent years, new LWD technologies have dramatically increased the amount of information collected downhole. This increasing demand for realtime bandwidth is a major challenge for conventional Mud Pulse Telemetry, which has data rates that are normally below 3 bits per second. This paper describes a system for downhole-to-surface Mud Pulse Telemetry that uses baseband or carrier modulated pressure signals generated by a novel mud pulser design and a surface data acquisition unit with advanced signal processing capabilities. The new system is able of handling the complex and continuously varying properties of the transmission channel (the pipe bore filled with flowing drilling mud) by optimizing the transmission signal and the surface processing algorithms in realtime. Under a given scenario, higher data rates can be achieved that, from a log-quality standpoint, result in high log-densities for improved realtime decision making. Surface processing algorithms include active pump noise cancellation, dual pressure transducer processing, signal filtering and signal decoding. In addition, the system contains an automated calibration routine that after turning pumps-on measures the characteristics of the transmission channel. This novel feature assures that the latest knowledge about the transmission channel is available in the processing algorithms. The new system has been successfully run in field-trials in the United States, North Sea, South America and the Middle East. During these deployments, data rates could be substantially increased compared to previous offset runs. The focus in this paper will be on a description of the system and its impact on both MWD and LWD realtime services.