In wireless communications, fading is the variation of signal attenuation over variables like time, geographical position, and radio frequency. Fading is often modeled as a random process. In wireless systems, fading may either be due to multipath propagation, referred to as multipath-induced fading, weather (particularly rain), or shadowing from obstacles affecting the wave propagation, sometimes referred to as shadow fading.

A fading channel is a communication channel that experiences fading.

The presence of reflectors in the environment surrounding a transmitter and receiver create multiple paths that a transmitted signal can traverse. As a result, the receiver sees the superposition of multiple copies of the transmitted signal, each traversing a different path. Each signal copy will experience differences in attenuation, delay and phase shift while traveling from the source to the receiver. This can result in either constructive or destructive interference, which amplifies or attenuates the signal power seen at the receiver. Strong destructive interference is frequently referred to as a deep fade and may result in temporary failure of communication due to a severe drop in the channel signal-to-noise ratio.

A common example of deep fade is the experience of stopping at a traffic light and hearing an FM broadcast degenerate into static, while the signal is re-acquired if the vehicle moves only a fraction of a meter. The loss of the broadcast is caused by the vehicle stopping at a point where the signal experienced severe destructive interference. Cellular phones can also exhibit similar momentary fades.

Fading channel models are often used to model the effects of electromagnetic transmission of information over the air in cellular networks and broadcast communication. Fading channel models are also used in underwater acoustic communications to model the distortion caused by the water.

The terms slow and fast fading refer to the rate at which the magnitude and phase change imposed by the channel on the signal changes. The coherence time is a measure of the minimum time required for the magnitude change or phase change of the channel to become uncorrelated from its previous value.

In a fast-fading channel, the transmitter may take advantage of the variations in the channel conditions using time diversity to help increase robustness of the communication to a temporary deep fade. Although a deep fade may temporarily erase some of the information transmitted, use of an error-correcting code coupled with successfully transmitted bits during other time instances (interleaving) can allow for the erased bits to be recovered. In a slow-fading channel, it is not possible to use time diversity because the transmitter sees only a single realization of the channel within its delay constraint. A deep fade therefore lasts the entire duration of transmission and cannot be mitigated using coding.

The coherence time of the channel is related to a quantity known as the Doppler spread of the channel. When a user (or reflectors in its environment) is moving, the user's velocity causes a shift in the frequency of the signal transmitted along each signal path. This phenomenon is known as the Doppler shift. Signals traveling along different paths can have different Doppler shifts, corresponding to different rates of change in phase. The difference in Doppler shifts between different signal components contributing to a signal fading channel tap is known as the Doppler spread. Channels with a large Doppler spread have signal components that are each changing independently in phase over time. Since fading depends on whether signal components add constructively or destructively, such channels have a very short coherence time.