Summary: It is difficult for an adaptive array to reduce interference signals efficiently from received signals when the interference signals and desired signal are closely located. This is a problem for a spatial division multiple access (SDMA) system using the multibeam adaptive array as a multiuser detector. In this paper, we propose a space domain multistage interference canceller (SD-MIC) for the SDMA system. Its performance is evaluated by computer simulations, assuming Japanese personal handy phone system (PHS) uplink environments. The results show remarkable improvement in high spatial correlation situations.