A method and system for dynamically adjusting Discontinuous Reception (DRX) settings of user equipment (UE) is disclosed. The method dynamically adjusts DRX settings based on network operator provided service or location of the UE and converged services supported by the network and so on. The UE indicates the network for adjusting DRX settings when DRX settings needs to be changed based on above parameters. Further, the wireless network provides the DRX settings to UE based on parameters. The method provides subscription information of the UE to access network. The method dynamically adjusts the DRX settings when the UE is in a Femtocell area or the UE associated with features like One Number. The UE can initiate a inter UE session transfer to the other UEs. The UE indicates the network that the sessions have been transferred. The network applies possible signaling optimizations to the UE.