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Taking into account the recent growth in research and development in wireless sensor networks it has been shown that they have a lot of scope in future. It is more important to pay attention to the security of wireless sensor networks as they are highly prone to threats. In this paper we propose a protocol for establishing the security mechanism of wireless sensor networks and devising a scheme for preventing Denial of Service attacks. The protocol organizes the network using the derivative key to establish secure communication and also incorporates authentication check to detect any malicious sensor nodes. The paper discusses the harmful nature of Denial of Service attacks and the protocol incorporated to identify the malicious sender inflicting the attack on the server. The protocol not only defends the network against Denial of Service attacks but also maintains confidentiality, integrity and authenticity of data transmitted between sensor nodes.