In this paper, we investigate the direction of LAN evolution. We focus rather on the philosophical changes than on the advances of technologies. In terms of topology, channel structure, and medium access control, we categorize major local area networks widely used in the past. We then investigate new directions in the concept and advances in the technology of local area networks. The idea of collapsed backbone is shown to be the most fundamental factor influencing the evolution of local area networks. Asynchronous Transfer Mode that is radically different form the existing LAN technology is now actively applied to LAN. In order to compete with ATM, conventional LANs should evolve to support quality of service for multimedia application