Abstract: A method shapes traffic using leaky bucket shaping and fair queueing techniques to shape conforming and nonconforming incoming traffic into a compliant output stream on an outgoing link connected to a node. An admitted or arriving cell is assigned to one queue in a set of queues. When a cell reaches the head of its assigned queue, a virtual finishing time is assigned to the cell, even if the cell has not reached its conformance time. A server then selects for transmission on the outgoing link, the head-of-line cell form among the queues with the smallest virtual finishing time. If the server selects a nonconforming cell for transmission, the selected nonconforming cell is rescheduled for transmission. If the selected cell is conforming, it is transmitted on the outgoing link.