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In this paper we propose an improved method for reducing background noise added to speech in noisy environments like helicopter cockpit or car engine. This implementation uses over-subtraction method for spectral subtraction. Masking properties of the human ear are exploited to reduce the residual noise after spectral subtraction. A psychoacoustically motivated weighting filter was included to mask the residual musical noise. Simulations showed a better quality with no distortion for the enhanced speech and the musical noise was effectively masked.