IEEE 802.15.4 and IEEE 802.11b, operating in the 2.4GHz unlicensed industrial scientific medical (ISM) frequency band, may lead to signal interference and result in significant performance degradation when devices are collocated in the same environment. The main goal of this paper is to evaluate the effect of mutual interference on the performance of IEEE 802.15.4 and IEEE 802.11b systems. An analytic model for interference between IEEE 802.15.4 and IEEE 802.11b is suggested. The packet error rate (PER), transmission delay, and throughput are evaluated for IEEE 802.15.4 and IEEE 802.11b. The power spectral density of the IEEE 802.11b is considered in order to determine in-band interference power of the IEEE 802.11b to the IEEE 802.15.4. The simulation results by OPNET are shown to validate the numerical analysis.