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Mobile IP was developed to enable computers to maintain Internet connectivity while moving from one Internet attachment point to another. Apparent inefficiencies of the basic Mobile IP (MIP) are triangle routing and home agent overloading. A technique to prevent the triangle routing problem of MIP is proposed. An encapsulation technique is modified to give a better delay performance for MIP. Instead of encapsulation at the home agent, the encapsulation is done at one level up in a hierarchical network. This reduces the delay of travelling the same link twice. The processing delay is also reduced, as the processing is not centralised at the home agent. Simulation of the original and proposed MIPs is carried out using NS-2 simulator on the Linux platform. The performance graphs show the improvement of the proposed MIP over the original MIP.