Corporate information communication systems are recently orienting the integration of various kinds of communication services. A PBX and a LAN have been indispensable in the realization of these systems. Some PBXs are orienting towards distributed switching architecture, and LAN systems are increasing their scale. Both requirements can be realized by means of a high speed loop optical fiber network. An integrated LAN should satisfy the required performance as a multimedia LAN and should be provided self-healing functions which heal failures automatically, to enable continuous operation of the entire system. This paper introduces a multimedia LAN, which attaches importance to the self-healing functions, called SHM-LAN. Its system architecture and its characteristics, such as efficient channel allocation are presented. This paper also deals with the self-healing functions and some applications.