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Interferometric phase filtering represents an indispensable step in interferometric synthetic aperture radar (InSAR) data processing. However, conventional filtering methods fail to make a balance between the noise elimination and phase preserving in strong noise environments or dense fringe regions. This in turn leads to an inaccurate interferometric phase. To overcome this problem, the authors introduce the concept of slope‐compensated filter based on the local adaptive frequency estimation. This method uses the estimation of signal parameters via rotational invariance techniques (ESPRITs), based on the singular value decomposition of the correlation matrix and generalised eigenvalue solution for providing an accurate local fringe frequency. Meanwhile, the size of the estimation window is adaptively determined by the coherence coefficient, and the judgement and modification of the invalid frequency estimation are utilised to further improve the accuracy of the local fringe frequency. Moreover, the authors consider a two‐stage with the back projection technique to further eliminate the noise residual and improve the filtering performance. The simulated and TerraSAR‐X add‐on for Digital Elevation Measurements (TanDEM) data sets are used to verify the effectiveness of the proposed method. The experimental results show that this method is capable of efficiently reducing the noise level as well as minimising the loss of the signal, outperforming other conventional methods. [ABSTRACT FROM AUTHOR]