Sensor failures in large uniform linear arrays cause significant degradation of the conventional beampattern. This paper proposes a beamspace adaptive channel compensation (B-ACC) method for interpolating the receiver channels based on a linear inverse theoretic framework. The objective of B-ACC is to adaptively reconstruct each receive beam of the full array by minimizing the leakage of strong directional interferers from the adjacent beams. Simulation and real data results show that B-ACC exhibits improved SINR and detection performance versus MMSE interpolation of the faulty sensors. © 2005 IEEE.