Mobile Ad-hoc NETworks (MANETs) does not have any rely on any fixed infrastructure and communicates in organized way. Security is an essential component for basic network functions which include packet forwarding, network management and routing. The nodes in the network act as a router that discover and maintain routes to other nodes in the networks. A mobile ad-hoc network is an infrastructure less network with self-configuring mobile nodes connected by wireless. To provide more security in MANET routing of data is done through the friends present in the network. The data is being encrypted and then it is routed through the friend list. The malicious nodes are being detected and isolated from the network by the challenge process.