In this paper, the focus is on the use of ternary tree over binary tree in Huffman coding. First of all, we give the introduction of Huffman’s coding. Then adaptive Huffman coding is discussed. Here, a one pass Algorithm developed by Vitter for constructing adaptive Huffman codes using binary tree is implemented to ternary tree. In this paper, it is shown that the use of Ternary tree results in minimizing numbers of nodes (internal) and path length, fast implementation, efficient memory, fast compression ratio and error detecting & error correcting.