A method and system for interworking between cellular networks and wireless local area networks (WLANs) are disclosed. At least one cellular network, at least one WLAN, and an IP network may be deployed. A wireless transmit/receive unit (WTRU) may establish a connection to a WLAN and a tunnel between an access point (AP) and a packet data gateway (PDG) may be established. The PDG may establish a tunnel to an IP network. The WTRU may invoke a service which is delivered through the WLAN. As signal quality from the AP degrades below a predetermined threshold, a handover from the WLAN to the cellular network may be performed. A new connection to the cellular network may be established either before or after breaking the current connection to the WLAN or the two connections may be maintained simultaneously.