This paper investigates the impact of diversity reception on the performance of Bluetooth (BT) packet transmission in wireless channels with fast fading and shadowing and in the presence of IEEE802.11g interference. In particular, selection diversity (SD) technique is considered and the adoption of this technique results in a coverage extension evaluated in the paper. We first derive a tight parametric exponential approximation for the instantaneous bit error probability (BEP) in additive white Gaussian noise (AWGN); then, from this expression, we derive the mean block error probability (BLEP) in Ricean fading channel by adopting a simple SD scheme. The analysis is then extended to the evaluation of the mean packet error probability (PEP) and the coverage probability (Pcov). In particular, the impact of the diversity order on the BLEP, PEP, and Pcov is shown. Copyright © 2007 John Wiley & Sons, Ltd.