We describe the theory, design and ongoing prototyping of a wireless ATM LAN/PBX capable of supporting mobile users with multi-Mb/s access rates and multi-Gb/s aggregate capacities. Our proposed LAN consists of network nodes called Portable Base Stations (PBS) providing microcell coverage. The PBSs are designed to be low-cost, compact and high-speed and can be relocated conveniently. We employ a concept of ad-hoc networking in the layout of the PBS-to-PBS interconnection. That is, the PBSs can be distributed in an arbitrary topology to form a backbone network and can be reconfigured with relative ease. The PBS-to-PBS backbone links are high-speed (Gb/s) for supporting high system capacity. Although they can either be wired or wireless, our emphasis is on wireless implementations. The user-to-PBS links, on the other hand, are primarily for mobile access (e.g., 2-20 Mb/s) and therefore are wireless. Wired connections from stationary users to PBSs are also possible. Typical mobile users are assumed to be laptops or notebook computers. Services supported include conventional data applications (e.g., over TCP/IP or SPX/IPX) as well as multimedia (video, voice and data) applications with QoS (Quality-of-Service) guarantees. A “wireless ATM” concept is proposed so as to provide seamless internetworking with other wired ATM local and wide-area networks. Algorithms and control in our network are highly distributed for simple implementations and ease of mobility management. A new wireless VP/VC concept and a Homing Algorithm are described to provide ATM cell routing and connections in the network. PBS hardware and software architectures are discussed. Call management, network management and signaling are designed for simplicity, high performance and modular implementations. A fast network restoration scheme is proposed to cope with the potential link or node failures in the ad-hoc network. Error control is addressed taking the unreliable wireless links into consideration. Finally, a prototyping project called BAHAMA (Broadband Ad Hoc ATM Anywhere) for demonstrating this network concept is briefly outlined.