We propose a new subcarrier allocation algorithm for Orthogonal Frequency Division Multiple Access (OFDMA) that gives fair allocation of capacity to multiple users with different channel and traffic characteristics. This is achieved by utilizing buffer state information and measured traffic statistics in addition to channel state feedback. Multiuser diversity gains are achieved in the proposed algorithm by scheduling across both time (buffering) and frequency (subcarriers). Simulation results are shown to illustrate (a) improved capacity allocation and throughput, and (b) larger admissible traffic when compared to the existing algorithms. © 2005 IEEE.