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An adaptive threshold algorithm is used for frequency-shift keying (FSK) demodulation in multi-targets and radar communication system. The special algorithm is needed because of the radar burst signal in this system. The selection of the threshold is generally a tradeoff between the goals of maximizing the probability of detection while minimizing false alarm. It replies radar pulse immediately without carrier synchronization, so the threshold is calculated by the priori knowledge of the signal amplitudes. CIC filter can save resource and is used after first down-conversion, but its performance of detection is not as good as FIR filter. Simulation results show that the adaptive threshold algorithm can reduce the probabilities of miss detection and false alarm.