This paper evaluates speech enhancement by filtering in the modulation frequency domain, as an alternative to filtering in conventional frequency domain. Adaptive Gain Equalizer (AGE) is a commonly used single-channel speech enhancement algorithm. A recently introduced class of signal transformations called modulation transform has successfully made its place alongside classical time/frequency representations. This paper presents an implementation of AGE within modulation system, for the purpose of enhancing the speech signal. The successful implementation of the proposed system has been validated with various performance measurements, i.e., Signal to Noise Ratio Improvement (SNRI), Mean Opinion Score (MOS) and Spectral Distortion (SD). A spectrogram analysis is also presented to further substantiate the performance of this work