A system and method for routing ATM cells in a wireless ATM local area network (LAN) that use portable base station (PBS) switching nodes. Routing of cells to and from mobile users within the network is accomplished utilizing a novel routing scheme which preserves cell sequence. Each user transmitting data to another user is associated with a Source Home Station or node and each user receiving data is associated with a Destination Home Station or node. When a connection is established in the network between a first mobile user and a second mobile user, the ATM cells are routed along a fixed path from the first mobile user to the associated Source Home Station and along a fixed path between the Source Home Station to the Destination Home Station and then along a fixed path from the Destination Home Station to the second destination user. In this way cell sequence is maintain by utilizing the Source Home to Destination Home path. Mobile users within the network are also associated with a Local PBS which can be different from the Home Stations as the mobile moves around the network. The Local PBSs associated with the mobile user are slowly updated to be the Home Stations to cure inefficient routing.