This paper presents a MIMO two-way relaying scheme where the transceiver filter at the Relay Station (RS) processes the data using Least Mean Square Algorithm (LMS) and Normalized Least Mean Square (NLMS) algorithm. The relaying technique used is Amplify and Forward scheme (AF). Channel State Information (CSI) is assumed to be available only at the RS. So the transmit and receive processing are both done at the RS. The data at the two nodes S1 and S2 is Quadrature Phase Shift Keying (QPSK) modulated. The metrics considered for performance comparison of the LMS/NLMS transceiver filter is Mean Square Error (MSE) and Bit Error Rate (BER). The computer simulations are performed using MATLAB. © 2011 IEEE.