In this paper we present a new approach to model the effect of virtual channel multiplexing in high-speed interconnection networks. Previous studies have used a method proposed by Dally to model the effect of virtual channel multiplexing. His method is based on a Markov process and loses its accuracy as the traffic increases because of the blocking nature of the wormhole-switched networks. Our new approach is based on a finite capacity queue, M/G/1/V. Beside the accuracy that it achieves under low, moderate and high traffic, a main advantage for our new approach is also the simplicity of adapting it to work with different traffic conditions and network setups. The new approach is validated by means of an event driven simulator and a detailed comparison with Dally’s approach is presented. Keywords Analytical models, interconnection networks, virtual channels, wormhole switching