Abstract: In the satellites with on board processing, congestion can occur as a result of statistical multiplexing on board the satellite. This would have negative impact on performance and satellite resource utilization. Effective congestion control schemes are required in order to prevent or limit the extent of congestion. The current paper concentrates on a novel scheme for congestion avoidance in multiple‐beam satellites with on board switching. The scheme is rate‐based and relies on the broadcast nature of the satellite in order to provide efficient support for Available Bit Rate (ABR) services. An important element in achieving efficiency is the synergy obtained by combining the congestion control with the mechanisms of the MAC layer scheduling. The new scheme has a distributed architecture, with algorithms implemented on board the satellite and in the ground terminals. After a detailed description of the scheme, simulation results are provided in order to illustrate its performance.