Abstract: Method and apparatus for detecting timeout for packets transmitted in a packet-switched point-to-point communication system is described. In one example, timeout logic in a transmitter includes a master time counter, a first-in-first-out circuit (FIFO), difference logic, a timeout counter, and timeout detection logic. The master time counter generates a time signal, and the FIFO stores time stamps for the packets in response to the time signal. The FIFO provides a time stamp to the difference logic in response to a packet acknowledgement. The difference logic computes a time left value in response to the time stamp, the time signal, and a predefined timeout value. The timeout counter counts down from the time left value towards a zero value. The timeout detection logic produces a timeout signal in response to the timeout counter reaching the zero value.