A system and method of free-space optical satellite communications includes a ground station and transceiver for transmitting and receiving an optical communications signal. Adaptive optics at the ground station are operative with the transceiver for determining the shape of any distortions in the wavefront of the optical communications signal and compensating at the ground station for the distortions. A satellite includes a transceiver for transmitting and receiving the optical communications signal and includes adaptive optics for determining the shape of any distortions in the waveform of the optical communications signal and compensating at the satellite for the distortions.