A new packet-combining (PC) scheme based on packet-level coding is proposed. Through feedback, the receiver controls the transmitting node to encode (XOR) source packets. Efficient methods to combat even-errors among erroneous packets are investigated. Also proposed is a reduced-complexity decoder. Numerical results show that the proposed scheme can significantly outperform the ARQ scheme or PC without coding.Introduction: Packet-level coding (e.g. network coding [1, 2]) has recently attracted substantial research interest for the applications of packet-level error control [3,4], though it was originally proposed for error-free networks. The schemes in [3,4] are generally more efficient than ARQ, which simply retransmits erroneous packets. For ARQ or network-coding-based schemes [3, 4], a packet is dropped, if any bit error is detected, e.g. by CRC. However, if the channel is in a good condition, the packets may only have a small number of erroneous bits. Thus, dropping the whole packet is inefficient. Based on this observation, [5], [6] propose packet combining (PC) to improve transmission efficiency. For PC, a packet is retransmitted if any error is detected, similar to ARQ.Yet, if the retransmitted packet also has errors, two erroneous packets are used to recover the source information jointly, rather than are dropped. Briefly, two erroneous packets are compared to find the locations of erroneous bits. With the locations, the receiver uses a brute-forced approach to search for correct source information. Hence, PC is an extension or modification of ARQ. Clearly, PC is invoked only when consecutive retransmitted packets have errors, and also one retransmitted packet can only be used for recovering one information packet. This limits the efficiency and application of PC.Based on the observation, we propose an error correction scheme combining packet-level coding and PC. Different from previous PC, a retransmitted packet is constructed for multiple erroneous information packets through coding. As we show, appropriate coding can substantially increase the transmission efficiency.