A method and system for processing out of order frames received by a host bus adapter is provided. The method includes, determining if a current frame is out of order; determining if a frame is within a range of transfer for an Exchange; and creating (or appending if not the first out-of-order frame) an out of order list if the current frame is a first out of order frame. The method also includes, determining if an entry in an out of order list has a relative offset value of zero; determining if at least one entry has a relative offset value equal to a total transfer length of an Exchange; and determining if every non-zero starting relative offset has a matching entry. The method also scans an out of order list and combines a last entry with an entry whose starting point matches the end point of the last entry.