This paper presents a coexistence model of IEEE 802.15.4 with IEEE 802.11b interference in fading channels and proposes two adaptive channel allocation schemes. The first avoids the IEEE 802.15.4 interference only and the second avoids both of the IEEE 802.15.4 and IEEE 802.11b interferences. Numerical results show that the proposed algorithms are effective for avoiding interferences and for maximizing network capacity since they select a channel which gives the maximum signal to noise ratio to the system.