Future wireless communication systems are expected to provide a broad range of multimedia services that have a significant traffic asymmetry between uplink and downlink. The code division multiple access-time division duplex (CDMA-TDD) system is a promising solution to cope with the problem of traffic asymmetry. However, the TDD system is subject to inter-cell interference compared to frequency division duplex (FDD) system. Since both uplink and downlink share the same frequency in TDD, uplink and downlink may interfere each other especially when neighboring cells require different rates of traffic load. Thus, the resource allocation among cells is an important issue in TDD. In this paper, the resource allocation in the CDMA-TDD is formulated as a mixed integer programming (MIP) problem. A dynamic resource allocation algorithm (DRAA) is provided that effectively solves the traffic asymmetry problem. The MIP problem is also solved by a well-known branch and bound procedure. Both the crossed slot and non-crossed slot allocation are examined and compared to the DRAA. Computational result shows that proposed DRAA gives a good performance as the traffic asymmetry increases between the uplink and downlink. Copyright (C) 2003 John Wiley Sons, Ltd.