Traditional 802.11 power saving mechanism (PSM) treats multicast and broadcast traffic equally, and suffers sig-nificant performance degradation with multicast background traffic. This paper proposes an enhanced PSM that effectively dif-ferentiates multicast streams. It re-arranges the virtual bitmap of the traffic indication map (TIM) to carry traffic status for mul-ticast groups and introduces a concept of sequential transmission of multi-addressed data to facilitate differentiation among mul-ticast groups. Our analysis shows that the enhanced PSM can effectively save power in mixed traffic environments. Traditional 802.11 power saving mechanism (PSM) treats multicast and broadcast traffic equally, and suffers sig-nificant performance degradation with multicast background traffic. This paper proposes an enhanced PSM that effectively dif-ferentiates multicast streams. It re-arranges the virtual bitmap of the traffic indication map (TIM) to carry traffic status for mul-ticast groups and introduces a concept of sequential transmission of multi-addressed data to facilitate differentiation among mul-ticast groups. Our analysis shows that the enhanced PSM can effectively save power in mixed traffic environments.