Abstract. An intention to adopt IP protocol for future mobile communication and subsequent extension of Internet services to the air interface calls for advanced performance modeling approaches. To provide a tool for accurate performance evaluation of IP-based applications running over the wireless channels we propose a novel cross-layer wireless channel modeling approach. We extend the small-scale propagation model representing the received signal strength to IP layer using the cross-layer mappings. Proposed model is represented by the IP packet error process and retains memory properties of initial signal strength process. Contrarily to those approaches developed to date, our model requires less restrictive assumptions regarding behavior of the small-scale propagation model at layers above physical. We compare results obtained using our model with those, published to date, and show that our approach allows to get more accurate estimators of IP packet error probabilities.