Abstract: In connection oriented networks such as Asynchronous Transfer Mode (ATM), the small fixed-size cells are sent thus the choice of turbo codes which have block code as component code is suitable. In this paper, we present a Turbo Coding scheme using Reed-Muller (RM) as component codes. In particular, we design the code in such a way to match the structure of the ATM (and ATM-like) cells by shortening the RM turbo codes. The performance of these turbo codes and their shortened versions with different shortening patterns are investigated. We also consider the problem of carrier phase recovery when the proposed turbo coding scheme is used with Quadrature Phase-Shift Keying (QPSK) modulation. The effects of phase offset and preamble size on the performance of shortened turbo code are reported.