A system and method monitors links in a computer network and rapidly detects failures of such links. Network entities (106) disposed at opposite ends of a link are provided with failure detection engines (210) that signal their presence to each other. Thereafter, each failure detection engine ensures that its entity transmits a continuous stream to the other entity by sending either data frames (204) or newly defined failure detection packets. If an interruption in this continuous stream is detected, then the failure detection engine (210) con­cludes that the link has failed. In response, the failure detection engine preferably noti­fies other applications or protocols of the failure, and causes the link to be shut-down.