In this paper, we propose a scheduling algorithm supporting variable length packet transmission under handoff environment in WDM-based micro-cellular networks. In this network architecture, by employing the broadcast nature of the star coupler, very simple and fast handoff procedure was achieved. The main idea of packet scheduling is to keep the base station’s receiver contention and wavelength channel collision probability as low as possible using the receiver and channel information of the neighboring base stations. Simulation results show that the proposed scheme performs better than the other pre-reported schemes for moderate and heavy handoff rate cases.