The performance of portable and wearable biosensors is highly influenced by motion artifact. In this paper, a novel real-time adaptive algorithm is proposed for accurate motion-tolerant extraction of heart rate (HR) and pulse oximeter oxygen saturation (SpO 2 ) from wearable photoplethysmographic (PPG) biosensors. The proposed algorithm removes motion artifact due to various sources including tissue effect and venous blood changes during body movements and provides noise-free PPG waveforms for further feature extraction. A two-stage normalized least mean square adaptive noise canceler is designed and validated using a novel synthetic reference signal at each stage. Evaluation of the proposed algorithm is done by Bland-Altman agreement and correlation analyses against reference HR from commercial ECG and SpO 2 sensors during standing, walking, and running at different conditions for a single- and multisubject scenarios. Experimental results indicate high agreement and high correlation (more than 0.98 for HR and 0.7 for SpO 2 extraction) between measurements by reference sensors and our algorithm.