Zigbee protocol is based on IEEE 802.15. 4 standard which supports low rate wireless personal area network (LRWPAN). For efficient data transfer and for improved network coverage, Zigbee mostly uses Ad Hoc on Demand Routing protocol called AODV as it is a simple and most efficient. This paper emphasizes on the impact of transmitting power on various performance metrics associated with the Zigbee network such as Packet Delivery Ratio (PDR), Network Throughput and the number of hops. Authors have used TRUE TIME 2.0, a Simulink-based simulator which supports both wired and wireless protocols such as WLAN and IEEE 802.15. 4 standard basedZigbee. Based on the simulation done, it can be established that the network through putup swings to a certain range with the increase in transmission power. Packet Delivery Ratio increases with the increase in transmission power due to reduced data packets collision. It can also be observed that the number of hops needed to establish the path between source node and the destination node decreases with the increase in transmission power. Authors have also introduced one more parameter called Hello Interval (HI), associated with the AODV protocol and presented the effect of transmission power on it. Authors have incorporated the concept of energy dissipation taking place at each node while transmission and reception of data message using AODV routing protocol. Energy efficient route concept is useful in prolonging the lifetime of the network.