A compression method featuring dynamic coding for wireless communication in wireless network is used to transmit a packet to clients. An access point (AP) divides a packet into several chunks all having a fixed length, sorts repetition frequencies of all the chunks, and encodes the repeated chunks with Huffman codes. Before transmitting the packet, AP divides the packet into chunks and determines whether there are chunks having been encoded, and transmits the encoded packet and the codes thereof to a specified client and other clients within coverage of transmission. After receiving the encoded packets, the client decodes the encoded packets to recover the original ones. The other clients also store the repeated chunks and the codes thereof. The information of the Huffman codes of the repeated chunks needn't be transmitted every time for different clients since other clients may overhear the Huffman codes not intended to send to them.