—Cross-layer scheduling and Hybrid ARQ (HARQ) are effective means to improve the spectral efficiency of wireless systems. However, most of the existing works handle HARQ and cross-layer scheduling in a decoupled manner based on heuristic approaches. In this paper, we propose an integrated design framework for cross-layer scheduling and HARQ design in multiuser systems with slow fading channel and outdated knowledge of channel state information at the base station (CSIT). We consider both the chase combining and incremental redundancy in HARQ. We define the average system goodput (which measures the average bits successfully delivered to the receiver) as the measure of system performance. Based on information theoretical approach, we derive the asymptotically optimal cross-layer policy (power allocation, rate allocation and user selection policies) to optimize the average system goodput with HARQ. In addition, we derive analytically the closed-form expression of the average system goodput, from which we can obtain useful design insights such as the role of HARQ in the overall cross-layer gain, the tradeoff between the system goodput and the HARQ delay as well as the sensitivity of the average system goodput with respect to the CSIT quality.