Consider a typical Bluetooth Network with Piconet and Scatternet scenario. A Master node with maximum seven no. of Slave nodes forming a Piconet. No. of Piconet can form Scatternet. Where the no. of Piconet may be connected with Slave/Slave nodes or Master/Slave nodes.

The flash video on the right hand side shows the formation of Piconet and Scatternet.