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After upgrading to Lion, I started experiencing this issue:

Internet stops working frequently.
- I open Safari and browse for some time - Suddenly I can't open any sites; Internet will stop working. - So I check WiFi; it is online and showing correctly in my MacBook Pro. - I check with my roommate and his Internet is working properly. - I switch to Google Chrome and it still doesn't work.

The solution is to turn WiFi off and back on, then restart my browser.

Does anyone else have this problem? Is this a bug?

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Does this happen right after you put your MacBook to sleep, or in the middle of using it? – Nathan Greenstein Jul 23 '11 at 12:33
It sounds like you are not getting a DHCP renewal once your mac thinks your lease has expired. Have you tried running /System/Library/CoreServices/\ to narrow down the cause? – bmike Jul 23 '11 at 13:45
Do the logs say anything? Check – Agos Jul 23 '11 at 16:03
up vote 5 down vote accepted

This is currently a known issue that lots of Lion users are reporting. The average seems to be 2 wifi dropouts per hour.

The current work around is (as you discovered) to toggle AirPort on/off.

This particular issue seems to be getting alot of attention so I'd expect a fix soon.

Apple support forum topic about this issue

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This response describes a fix that worked for me:

Open up preferences and go to network. Make note of your settings as you will have to rebuild them.

Rename the preferences.plist to .old which can be found here: /Library/Preferences/SystemConfiguration/

Now go back to preferences and rebuild your settings as it will be blank. You may have to manually recreate a new location and then hit apply. This recreates a new preferences.plist

After this, I also had to reboot, and the problem went away.

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