LTE (Long Term Evolution) is a fourth generation cellular network technology that provides improved performance related to data rate, coverage and capacity compared to legacy cellular systems. In this context, one of the main goals of LTE is to provide fast and seamless handover from one cell to another to meet a strict delay requirement while simultaneously keeping network management simple. Hence, the decision to trigger a handover is a crucial component in the design process of handover, since the success and the efficiency, to a large extent, depends on the accuracy and timeliness of the decision. The design of an efficient and successful handover requires a careful selection of HO parameters and the optimal setting of these. The LTE standard supports two parameters to trigger the handover and select the target cell: hysteresis margin and Time-to-Trigger (TTT) The research topic of this thesis which is “LTE Handover Performance Evaluation Based on Power Budget Handover Algorithm”, focuses on different combinations or settings of HOM and TTT values to evaluate the handover performance based on Reference Signal Received Power (RSRP) measurement within certain deployment scenarios, such as different UE speeds, system loads and cell sizes. The Power Budget Handover Algorithm (PBHA) picks the best hysteresis and time-to-trigger combinations to evaluate the system performance in terms of number of handovers, signal-to-interference plus noise ratio (SINR), throughput, delay and packet lost for UE's which are about to perform the handover.