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This paper proposes an efficient handoff decision algorithm using differential received signal strength indicator (RSSI) in MPLS-based mobile IP network. MPLS-based mobile IP integrates mobile IP and MPLS. The differential RSSI value is efficient to decide handoff because this value could represent the movement direction of mobile node (MN). In our algorithm, a base station tracks the differential RSSI value of mobile node in overlapped region and releases the reserved bandwidth of MN with the differential RSSI value. As shown by numerical analysis, our algorithm using differential RSSI could increase performance by decreasing handoff blocking probability.