Mobile Ad-Hoc network is an independent system formed by a set of mobile nodes that can communicate through wireless links. The difference between these networks and cellular networks is that mobile Ad-Hoc networks do not have any fixed and pre-existing infrastructure. Because of mobile nodes in Ad-Hoc networks, the topology is not fixed and changes rapidly Hence, many routing algorithms have proposed for these networks. Position-based algorithms use physical position information of nodes in routing. In these networks each node determines its location by GPS. In this paper a new position-based routing algorithm which is called ILAR(Improved Location-Aided Routing) have proposed. In this algorithm, with insertion of routes in intermediate nodes' caches and using of position information of intermediate nodes and several other improvements in LAR algorithm, overhead is reduced and more bandwidth is allocated to data transmission. Simulation results show that ILAR algorithm leads to an improvement in overhead.