This document describes a study that introduces a Modified Error Data Normalized Step Size (MEDNSS) algorithm for an adaptive noise canceller. The MEDNSS algorithm uses a time-varying step size that depends on normalization of both the error and data vectors. The performance of the MEDNSS algorithm is analyzed through computer simulation and compared to the Error Data Normalized Step Size algorithm in stationary and non-stationary environments with different noise power levels. Simulation results show the MEDNSS algorithm significantly improves minimizing signal distortion, excess mean square error, and misadjustment factor compared to the EDNSS algorithm.