Wireless LAN uses wireless transmission medium for data transfer operation. Wireless LAN is used rarely because of its high price, low data rates, and licensing requirements. It may need to support hundreds of nodes across multiple cells. The medium access control protocol should make efficient use of the wireless medium to maximize capacity. A typical coverage area for a wireless LAN may be up to a 300 to 1000 feet diameter. Mobile users use battery powered workstations that need to have a transmission and security for data transfer. The MAC protocol used in the wireless LAN should enable mobile stations to move from one cell to another. The MAC addressing and network management aspects of the LAN should permit dynamic and automated addition, deletion, and relocation of end systems without disruption to other users. The application of wireless LAN is LAN extension, cross building interconnect, nomadic access and Ad Hoc networking.