In this paper, the structure of modified multiplication-free adaptive filter(M-MADF) and convergence analysis are presented. To evaluate the performance of proposed M-MADF algorithm, fractionally spaced equalizer (FSE) is used. The input signals are quantized using DPCM and the reference signals is processed using a first-order linear prediction filter, and the outputs are processed by a conventional adaptive filter. The filter coefficients are updated using the Sign algorithm. Under the assumption that the primary and reference signals are zero mean, wide-sense stationary and Gaussian, theoretical results for the coefficient misalignment vector and its autocorrelation matrix of the filter are driven. The convergence properties of Sign. MADF and M-MADF algorithm for updating of the coefficients of a digital filter of the fractionally spaced equalizer (FSE) are investigated and compared with one another. The convergence properties are characterized by the steady state error and the convergence speed. It is shown that the convergence speed of M-MADF is almost same as Sign algorithm and is faster that MADF in the condition of same steady error. Especially it is very useful for high correlated signals.