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This paper presents a congestion control algorithm, which uses cross-layered approach and rate-based transmission, for IEEE 802.11 wireless LANs (WLANs). The proposed algorithm considers the contention density which represents the degree of contention level experienced at a given station. From the contention density, each station can compute available bandwidth and adjusts its sending rate. The evaluation results show that throughput achieved by our algorithm is around 10% and about 20% at peak point, higher than that of TCP and TCP-SACK.