CSMA/CD is used to implement flow control in a full-duplex Ethernet network in a lossless fashion. Uniquely identifiable flow control transmit on/off (“XON/XOFF”) messages are transmitted, preferably during IPG, by a receiving station about to be congested to the transmitting station whose data output is to be controlled. The transmitting station physical layer receives and decodes these messages. If XOFF is recognized, the transmitting station continuously asserts CRS to its MAC layer at the MII, regardless of the prior CRS current state. CRS is continuously asserted until the receiving station transmits an XON flow control signal, indicating its ability to accept further data. During CRS assertion, the transmitting station defers transmission, e.g., is flow controlled. The MAC layer is slightly modified (but is still backward compatible with half-duplex networks) to provide separate transmit deferral receive data frame mechanisms using separate and independent input status signals, namely CRS and RX_DV. CRS provides a carrierSense signal used for deferral within the MAC transmit process, and RX_DV provides a receive_carrierSense signal that frames data within the MAC receive process. As long as CRS remains asserted, the transmitting station defers transmission, thereby implementing flow control. In addition to slight MAC layer modification, the present invention slightly modified the physical layer, MII interface and reconciliation sublayer.