Media Access Control (MAC) layer transmit and receive buffering with multi-level prioritization. The receive buffering allocates receive buffers for receiving frame data from a PHY interface in priority order using both a static and dynamic buffer allocation, and delivers completed buffers queued in a multi-level priority queue to a host interface highest priority first. The transmit buffering delivers completed buffers queued in a multi-level priority queue to the PHY interface in priority order. When the multi-level priority queue contains a buffer that is higher priority than one being prepared for transmit, a priority-based interruption causes the transmit processing of the buffer to be suspended at its current state with the higher priority buffer taking its place. Upon completion of the higher priority buffer, the suspended buffer is resumed at its current state.