TCP flow control algorithms have been designed for wireline networks where congestion is measured by packet loss due to buffer overflow. However, wireless networks also suffer from significant packet losses due to bit errors and handoffs. TCP responds to all the packet losses by invoking congestion control and avoidance algorithms and this results in degraded end-to-end performance in wireless networks. In this paper, we describe an Wireless Random Exponential Marking(WREM) scheme which effectively improves TCP performance over wireless networks by decoupling loss recovery from congestion control. Moreover, WREM is capable of handling the coexistence of both ECN-Capable and Non-ECN-Capable routers. We present simulation results to show its effectiveness and compatibility.