The quality of speech transmission in mobile communication systems deteriorates due to the presence of background noise and acoustic echo. The background noises are the disturbances from the surroundings and acoustic echo is induced due to the reverberation of loudspeaker signal in the near end environment. In conventional acoustic echo suppression setup, the echo path effect is modelled either in time or in frequency domain, and to cancel the echo, a replica of the echo is created by estimating the echo path response adaptively in the corresponding domain. Recently, the modulation domain analysis, which captures the human perceptual properties, is widely being used in speech processing. Modulation domain conveys the temporal variation of the acoustic magnitude spectra which acts as an information bearing signal. In this work, a novel integrated system for acoustic echo and noise suppression in the modulation domain is developed. So far, no work in this context in modulation domain has been found as reported. An efficient method for modelling the echo path and estimating the echo in the modulation domain is introduced and implemented. The effects of echo and noise are suppressed using the modulation spectral manipulation and the performance of the proposed system is found to be better than other conventional integrated systems.