Abstract: A system and method for synchronizing variable bit rate traffic between a source and destination in an Asynchronous Transfer Mode (ATM) network. The method includes designating a variable bit rate ATM Adaptation Layer (AAL) protocol to define ATM cell traffic flow from the source to the destination. A synchronous residual timestamp (SRTS) value indicative of the timing of a source clocking function is encoded and transmitted with an ATM cell using a variable bit rate AAL, such as AAL2 or AAL5. The ATM cells and associated SRTS values are received and decoded at the destination ATM interface, and the destination clock is synchronized with the source clock by modifying the destination clock according to the SRTS values.