Multimedia communication services are being made available with the advent of broadband optical fiber networks. As many different services will be accommodated in such networks, network survivability has been recognized to be a crucial concern. In this paper, we propose a new restoration algorithm for ATM networks providing multimedia services. Our proposed restoration algorithm adopts the message bundling scheme of the Multi-Destination Flooding (MDF) algorithm which was previously proposed for STM-based networks to handle catastrophic failures such as multiple link and node failures. Virtual Paths (VP) with the same communication speed are bundled and Operation Administration and Maintenance (OAM) cells are used for communication of restoration messages. In addition, the following modifications are made on the original MDF to improve restoration performance. The pre-cancellation scheme is adopted to arbitrate reservation contention to realize high restoration ratio. The dual queue scheme is applied to avoid congestion of restoration messages. Moreover, the connection control scheme for VPI connections is proposed to prevent alternative routes from being misconnected. This paper describes the design concept of our restoration algorithm, processes in each restoration phase, and the performance evaluation by computer simulation.