Bluetooth is a low-cost and short-range wireless communication technology. Two or more bluetooth devices connected form a piconet and two or more piconets connected form a scatternet through relay devices. Without the consideration of traffic flows, a scatternet may operate with serious congestion problem. Congestion problem can be resolved by either reduced traffic flows or increased bandwidth provision. In bluetooth, new piconet can be dynamically constructed to increase system bandwidth. However, as the number of piconet is increased, collision problem among piconets becomes a serious problem. The objective of this paper is to resolve the congestion problems in a scatternet through piconet restructuring which perform both flow analysis and distributed role-switching technique. Advantages of the proposed piconet restructuring mechanism includes the following: (1) the communication bottleneck can be released; (2) the communication path is shortened; (3) the transmission latency is reduced; and (4) the lifetime of piconets can be increased. Experimental results demonstrated that the proposed method could effectively increase the transmission efficient in each piconet and increase the performance of an entire scatternet.