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The embodiments described herein provide a method and system for improve link adoption performance in wireless networks. The method for modifying the MCS index for transmission using a computed offset is provided. The offset is calculated based on HARQ feedback of transmissions. A transition probability matrix with plurality of MCS indices is used for selecting the MCS index for transmission based on the highest probability of transition. A pattern sequence of MCS indices is formed and the presence of the pattern is determined in the history of the HARQ transmissions. The frequency of the pattern presence is also determined and the MCS index is selected for the HARQ transmissions. A frequency database of MCS indices is built using source encoding techniques. The transition probabilities that are estimated from the frequency database along with a cost function associated with each MCS index will be …