A method of fast link adaptation for Bluetooth long-range wireless networks is provided. A novel rate indication (RI) field is incorporated in a data packet to enable auto detection of rate adaptation at the receiver side. The data packet comprises a preamble, a first packet portion including the RI field, and a second packet portion including the PDU. The first packet portion is encoded with a first rate while the second packet portion is encoded with a second rate indicated by the RI field. The transmitting device raise/lower the encoding rate when the link quality is good/poor. The receiving device can provide recommended rate or link quality feedback information via an LMP message to help the transmitting device making rate adaptation decision. The transmitter can unilaterally decide the data rate for the second packet portion without receiver recommendation.