AbstractThis paper describes the implementation of a prototype ATM adaptation layer (AAL) within the kernels of two machines running Sun Operating System 4.1.1. The implementation is achieved by using the STREAMS paradigm and an Ethernet link between the two machines as a surrogate optical fibre link. The flexibility of the STREAMS facility for building layered protocols, and the real‐time performance limitations of the STREAMS scheduling system are identified. STREAMS is shown to be no less susceptible to naïve buffer utilization than earlier paradigms. It is necessary to minimize message passing and copying of data to achieve high throughput. This study has clarified several key issues in the functional design of AA