As the number of Mobile IP users is expected to grow, the signaling overhead associated with mobility management in the mobile Internet is bound to grow. And since the wireless link has far less bandwidth resources and limited scalability compared to the wired network link, the signaling overhead associated with mobility management has a severe effect on the wireless link. In this paper, we propose IP-Grouping scheme. In the proposed scheme, Access Routers (ARs) with a large number of handoff are grouped into a Group Zone. The signaling cost in the wireless link can be greatly reduced as the current Care-of Address (CoA) of Mobile Node (MNs) is not changed whenever the handoffs occur between ARs within the same Group Zone. The performance of the proposed scheme is compared with the Hierarchical Mobile IPv6 (HMIPv6). We present the analysis and simulation results for IP-Grouping and HMIPv6, and show that IP-Grouping reduces the wireless signaling overhead under various system conditions and supports the mobility of a large number of MNs.