The use of adaptive antennas in mobile and cordless communications systems offers the possibility of increased system capacity by interference suppression and improved performance in the presence of adverse propagation effects. A CEC RACE project (R2108 TSUNAMI) has been set up to investigate the applicability of such techniques to third generation mobile radio systems. This paper describes an adaptive antenna demonstrator currently under development as part of the TSUNAMI work programme which will be used in field trials beginning in early 1995.