Asynchronous Transfer Mode (ATM) is a cell relay network protocol which encodes data traffic into small fixed-sized (53 byte; 48 bytes of data and 5 bytes of header information) cells instead of variable sized packets (sometimes known as frames) as in packet-switched networks (such as the Internet Protocol or Ethernet). It is a connection-oriented technology, in which a connection is established between the two endpoints before the actual data exchange begins.

ATM was intended to provide a single unified networking standard that could support both synchronous channel networking (PDH, SDH) and packet-based networking (IP, Frame relay, etc), whilst supporting multiple levels of quality of service for packet traffic.

ATM sought to resolve the conflict between circuit-switched networks and packet-switched networks by mapping both bitstreams and packet-streams onto a stream of small fixed-size 'cells' tagged with virtual circuit identifiers. The cells are typically sent on demand within a synchronous time-slot pattern in a synchronous bit-stream: what is asynchronous here is the sending of the cells, not the low-level bitstream that carries them.

In its original conception, ATM was to be the enabling technology of the 'Broadband Integrated Services Digital Network' (B-ISDN) that would replace the existing PSTN. The full suite of ATM standards provides definitions for layer 1 (physical connections), layer 2 (data link layer) and layer 3 (network) of the classical OSI seven-layer networking model. The ATM standards drew on concepts from the telecommunications community, rather than the computer networking community. For this reason, extensive provision was made for integration of most existing telco technologies and conventions into ATM.

As a result, ATM provides a highly complex technology, with features intended for applications ranging from global telco networks to private local area computer networks. ATM has been a partial success as a technology, with widespread deployment, but generally only used as a transport for IP traffic; its goal of providing a single integrated technology for LANs, public networks, and user services has largely failed.