One of the most important topics of recent years is that a multimedia technology such as wireless ATM has been introduced in radio systems for video, voice and data transmission. A major problem in such systems is the occurrence of errors due to multipath fading or interference. To combat this problem, forward error correction (FEC) coding is commonly used as a means of eliminating these errors. This paper has analyzed theoretically the effect of fading to design effective wireless ATM system. The BER, CLR, and CER of wireless ATM system adopting FEC coding and diversity reception techniques have been derived in fading environment. Also, simulations of BER and CLR have been carried out and compared with the above theoretical results.