An electronic device and a power saving method of an electronic device forming an ad-hoc network are provided. The electronic device includes a communication circuit configured to transmit a beacon frame defining a beacon interval to an external device forming an ad-hoc network with the electronic device; and a processor configured to determine a state of the communication circuit during the beacon interval based on whether an announcement traffic indication message (ATIM) frame is transceived between the electronic device and the external electronic device. The method includes receiving power saving mode support information indicating whether to support a power saving mode function, from at least one external device; and activating or deactivating the power saving mode function of the electronic device based on the power saving mode support information.