For the efficient interconnection between SMDS and LAN, an interconnection protocol architecture in the router is proposed in this paper. A control method of xongestion which is produced by this interconnection of SMDS and LAN is also proposed. Especially, the SIP level 3 of SMDS is devided into CS-SIP3 sublayer and CLNAP sublayer in order to circumvent the problems which are producted by the protocol difference of two networks and to consider the interconnection with B-ISDN in the future. In this way, the interconnection of SMDS and LAN is transparentlly achieved through CLNAP layer, and the interconnection protocol architecture becomes simple. To test the performance of the router, amodel of interconnection protocol which is proposed by this paper is simulated using sliding window flow control. The simulation results show that the throughput of router is increased. The packet delay and the rate of packet discard are also decreased.