ZMODEM is an inline file transfer protocol developed by Chuck Forsberg in 1986, in a project funded by Telenet in order to improve file transfers on their X.25 network. In addition to dramatically improved performance compared to older protocols, ZMODEM offered restartable transfers, auto-start by the sender, an expanded 32-bit CRC, and control character quoting supporting 8-bit clean transfers, allowing it to be used on networks that would not pass control characters.

In contrast to most transfer protocols developed for bulletin board systems (BBSs), ZMODEM was not directly based on, nor compatible with, the seminal XMODEM. Many variants of XMODEM had been developed in order to address one or more of its shortcomings, and most remained backward compatible and would successfully complete transfers with "classic" XMODEM implementations. This list includes Forsberg's own YMODEM.

ZMODEM eschewed backward compatibility in favor of producing a radically improved protocol. It performed as well or better than any of the high-performance varieties of XMODEM, did so over links that previously didn't work at all, like X.25, or had poor performance, like Telebit modems, and included useful features found in few or no other protocols. ZMODEM became extremely popular on bulletin board systems (BBS) in the early 1990s, becoming a standard as widespread as XMODEM had been before it.