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At present, various communication protocols for an automotive distributed control multiplex system that aims at solving wire complexity and meeting the requirements of high reliability and open system flexibility have been proposed and installed in production cars. The requirements for an automotive distributed multiplex system, especially reliability, flexibility, and economy have been analyzed in detail, and as a result a new communication protocol based on SAE J-1850 has been developed. This paper describes the design philosophy and technical features of the protocol, named PALNET (Protocol for Automotive Local area Network) and the result of evaluation with the experimental system. PALNET covers moderate speed signals in vehicle electrical and electronic system. Main technical features of PALNET are as follows. Introduction of a new acknowledgement method named ANC (Acknowledgement for Network Control) secures high reliability of data communication.