In this paper, we propose for improving QoS in wireless micro cellular network using Cellular-IP/PRC(Paging Route Cache) with Paging Cache and Route Cache in Cellular-IP and propose for performance of realtime and non-real time handoff service using Handoff state machine Paging Route Cache. Although the Cellular-IP/PRC technology is devised for mobile internet communication, it bas its vulnerability in frequent handoff environment. On the other hand, Cellular IP combines the capability of cellular networks to provide high performance handoff and efficient location management of active and idle mobile users with the inherent flexibility, robustness and scalability found in IP networks. Also Cellular-IP/PRC use semi-soft handoff. During semi-soft hand off a mobile host may be in contact with either of the old and new base stations and receive packets from them. Packets intended to the mobile node are sent to both base stations and buffered, so when the mobile host eventually moves to the new location it can continue to receive packets without interruption. It should be suitable for realtime service such as multimedia traffic. But, much waste of resource will occur in this method, especially for non-real time services such as FTP and E-mail. Therefore, a new algorithm that performs different handoff according to characteristic of each traffic by use of reserved field in IP packet is proposed in this thesis. This hand off state machine using differentiated handoff improves quality of services in Cellular-IP/PRC. Suggested algorithm shows better performance than existing technology in wireless mobile internet communication environment. Matlab simulation results are improving QoS, show call drop and call blocking provided to Paging Router Cache during handoff state machine in Cellular-IP/PRC.