A onedimensional radiative transfer scheme is presented which accounts for the efTects of broken cloud in the solar and infrared rdition field. The fractional cloud amount is explicitly considered in the two-stream model by treating clouds as the boundary condition between two adjacent atmospheric layers. The scheme accounts for absorption and scattering by gases and aerosols assuming realistic atmospheres. The radiative properties of broken clouds are included in a parameterized form making use of results from three-dimensional radiative transfer models. The radiative characteristics of a cloud field are represented by an average finite cloud whose size or optical thickness grows with increasing cloud amount. This growth is described by a simple mathematical model, and its use yields qualitative agreement between model results and observations for solar radiation.The scheme is then applied to calculate the net radiative effect of broken cloud. Since thecloud size growth with cloud amount implies a non-linear relation between the fractional cloud amount and the radiative properties of the cloud field, the net radiative eff'ect of cloud depends on cloud mount. The idealized model shows that the albedo efTcct (increase of solar reflection with cloud amount) of broken cloud is smaller than that of a plane-paralkl cloud for cloud amounts less than about 0.7. while the opposite is true for larger cloud amounts. The greenhouse efTcct (reduction of the outgoing long-wave flux) of broken cloud is larger than that of a plane-paralkl cloud for small cloud amount and smaller for large cloud amount.An application of the radiation scheme to compute bispectral curves of visibk albedo versus thermal brightness temperature shows that broken cloud layers and unbroken layers with variable optical depths show a similar shape of the bispectral curve.