Malicious nodes affect the Performance of mobile ad-hoc networks seriously. Wireless ad-hoc networks are rapidly gaining in a mode of communication specifically in mobile sectors; MANET is designed with wireless devices without existing infrastructure. Finally the networks are very easy to deploy and used in business and personal applications. To provide a more flexible mode of communication; wireless ad-hoc networks are more desirable. Multi-hop route is used to communicate with each other in ad-hoc networks. In a MANET, if malicious nodes are present, they reduce network connectivity effectively and affect falsely to be co-operative; but they are dropping data that are meant to pass on.