Prior works on the hidden terminal problem in wireless networks often assume that the SNR requirement and the transmission range in a network are fixed. In fact, they are rate dependent. Because of this assumption, many of the prior conclusions about the hidden terminal problem are not accurate. A new analysis of the hidden terminal problem is presented in the paper. The new insights provided by the analysis lead to a rate-matching scheme for tackling the hidden terminal problem in wireless networks. The new method is simple, yet efficient, and requires no protocol changes from the 802.11 standard. NS2-based simulations are given in the paper to demonstrate the advantages of the new scheme.