An improved automatic frequency compensation (AFC) technique and apparatus is provided for piconet applications, e.g., BLUETOOTH(TM) applications. In particular, the present invention provides an offset normalizer which normalizes frequency offset against maximum deviations. By normalizing the frequency offset, before determination of an adjustment of a local oscillator, the local oscillator adjustment becomes uncorrelated with respect to gain along the receiving path (including in a demodulator). Thus, extremely precise adjustments can be made to the local oscillator in a piconet device to provide extremely precise automatic frequency compensation.