A method of powerline communications in a powerline communications (PLC) network including a first node and at least a second node. The first node transmits a data frame to the second node over a PLC channel. The second node has a data buffer for storing received information. The second node runs a flow control algorithm which determines a current congestion condition or a projected congestion condition of the data buffer based on at least one congestion parameter. The current congestion condition and projected congestion condition include nearly congested and fully congested. When the current or projected congestion condition is either nearly congested or fully congested, the second node transmits a BUSY including frame over the PLC channel to at least the first node. The first node defers transmitting of any frames to the second node for a congestion clearing wait time.