In this paper, we introduce a novel approach for an efficient solution of matrix equations arising in the method of moments (MoM) formulation of electromagnetic scattering problems. This approach is based on the characteristic basis functions (CBFs), which are used to substantially reduce the matrix size because these bases are not bound by the conventional λ/20 domain discretization. As a result, it is possible to electrically solve large problems with much fewer unknowns than those needed when using conventional RWG basis functions. The accuracy and efficiency of the CBFs are demonstrated in a variety of scattering problems to illustrate the versatility of the approach. © 2002 Wiley Periodicals, Inc. Microwave Opt Technol Lett 36: 95–100, 2003; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/mop.10685