An adaptive nonlinear signal-filtering model of the cochlea is proposed based on the functional properties of the inner ear. The model consists of the cochlear filtering segments taking into account the longitudinal, transverse and radial pressure wave propagation. On the basis of an analytical description of different parts of the model and the results of computer modeling, the biological significance of the nonlinearity of signal transduction processes in the outer hair cells, their role in signal compression and adaptation, the efferent control over the characteristics of the filtering structures (frequency selectivity and sensitivity) are explained. © 2004 Elsevier Ltd. All rights reserved.