Numerous studies have shown that packet reordering is common, especially in networks where there is high degree of parallelism and different link speeds. Reordering of packets decrease the TCP performance of a network, mainly because it leads to overestimation of the congestion in the network. In this paper, we analyse the performance of networks when reordering of packets occur. We propose a proactive solution that could significantly improve the performance of the network when reordering of packets occurs. We report results of our simulation experiments, which support this claim. Our solution is based on enabling the senders to distinguish between dropped packets and reordered packets. Copyright © 2005 John Wiley & Sons, Ltd.