The present invention provides an audio streaming system and method for transmitting audio signals with high quality. The advantages of the present invention include easy implementation, computational efficiency, and provision of better audio quality. More particularly, the present invention provides a Multi-band Time Expansion algorithm for lost packet concealment. The Multi-band Time Expansion algorithm detects the number of continuously lost packets in an audio input signal and the correctly received packets on either side of the lost packets. Then the Multi-band Time Expansion algorithm time-expands the correctly received packets that may be from either one side or both sides of the lost packets, wherein the correctly received packets are stretched to cover the length of the lost packets. Finally the Multi-band Time Expansion algorithm overlap-adds the stretched packets so that the lost packets are concealed.