In a typical Ad Hoc network, mobile nodes have scarce shared bandwidth and limited battery life resources, so optimizing the resource and enhancing the overall network performance is the ultimate aim in such network. This paper proposes anew cross layer MAC algorithm called Location Based Transmission using a Neighbour Aware – Cross Layer MAC (LBT-NA Cross Layer MAC) that aims to reduce the transmission power when communicating with the intended receiver by exchanging location information between nodes in one hand and on the other hand the MAC uses a new random backoff values, which is based on the number of active neighbour nodes, unlike the standard IEEE 802.11 series where a random backoff value is chosen from a fixed range of 0–31. The validation test demonstrates that the proposed algorithm increases battery life, increases spatial reuse and enhances the network performance.