A system and method are provided that allow WiGig protocol adaptation layers (PALs) to operate differently from the proposed WiGig standard on top of an Internet protocol (IP) layer in order to enhance routing options for communication of the data traffic between a transmitting (source) device and a receiving (sink) device. A layering architecture is provided that allows WiGig PALs, such as WDE, to operate on top of an IP layer. A signaling mechanism is also provided that allows a negotiation, or at least an indication, of the underlying layering structure for specific data communications. Recognizing that the next generation wireless display requires technology such as WiGig WDE to support the driving demand for a cable replacement user experience and richer wireless display use cases, this PAL over IP architecture optimizes alignment of the WiGig data communication technology with other data communication technologies.