A cable modem method, system, and computer program product are provided for payload header suppression in which a limited number of suppression indices is used to map suppression rules to data streams. Network resources are conserved by implementing precise classification algorithms to correctly identify incoming packets at the cable modem as belonging to a particular data stream, which ensures that a minimum number of suppression indices are utilized. Additionally, network resources are conserved by utilizing sophisticated algorithms for reusing suppression indices when new data streams are detected by the cable modem. One such reuse algorithm involves recycling the suppression index that has been least recently used in transmitting a packet with a suppressed payload header.