Abstract: Power saving is one of the key issues in Mobile Ad-Hoc Networks (MANETs). It can be realized in Medium Access Control (MAC) layer and network layer. However, previous attentions were mainly paid to MAC layer or network layer with the aim of improving the channel utilization by adopting variable-range transmission power control. In this paper we focus on the power saving in both MAC layer and network layer, and propose a Power Adjusting Algorithm (PAA). In the presence of host's mobility, PAA is designed to conserve energy by adjusting the transmission power to maintain the route's connectivity and restarting the route discovery periodically to find a new route with better energy efficiency dynamically. After analyzing the operations of PAA, we find that the length of route discovery restarting period is a critical argument which will affect power saving, and an energy consumption model is abstracted to find the optimal value of the restarting period by analyzing the energy consumption of this algorithm. PAA can handle the mobility of MANET by adjusting the transmission power and in the meantime save energy by restarting route discovery periodically to balance the energy consumption on route discovery and packet delivering. Simulation results show that, PAA saves nearly 40% energy compared with Dynamic Source Routing protocol when the maximum speed of mobile hosts is larger than 8 m/s.