A system and method are provided for converting multichannel serial data streams into packets. The method accepts a plurality of serial data streams in a corresponding plurality of channels. In a time domain multiplexed (TDM) fashion, groups with an undetermined number of data bits are packed from each data stream, into an associated channel segment queue, where each segment includes a predetermined number of bits. In a TDM fashion, segments are loaded into an associated channel payload queue, where each payload includes a predetermined number of segments. Once a payload is filled, an associated pointer is created in a pointer queue. The method selects a pointer from the pointer queue, creates a packet from the payload associated with the selected pointer, and transmits the packet via a packet interface. The packet overhead may include information stored in the pointer, a packet header, or a cyclic redundancy check (CRC) checksum.