Modulation system having on-line IQ calibration

A modulation system having in-phase and quadrature phase (IQ) calibration while on-line. The modulation system includes an on-line correction data state detector, an IQ correction code, and a scalar amplitude detector. The on-line correction state detector detects the presence of particular data states that are expected to result in particular modulation states or transition locations. When a particular data state is detected the IQ correction code compares the detected scalar magnitude with others that have been detected. The IQ correction code then uses the comparison to generate adjustments for I and Q offsets, I/Q phase, and I/Q gain. In a rotation embodiment, the modulation system further includes a rotation signal generator for generating rotation angles and an IQ rotator for applying the rotation angles for rotating the I and Q digital data streams.