In a multi-hop mobile ad hoc network (MANET) mobile nodes communicate with each other forming a cooperative radio network. Security remains a major challenge for these networks due to their features of open medium, dynamically changing topologies, reliance on cooperative algorithms, absence of centralized monitoring points, and lack of any clear lines of defense. Most of the currently existing security algorithms designed for these networks are insecure, in efficient, and have low detection accuracy for nodes' misbehaviour. In this paper, a new approach has been proposed to bring out the complementary relationship between key distribution and misbehaviour detection for developing an integrated security solution for MANETs. The redundancy of routing information in ad hoc networks is utilized to develop a highly reliable protocol that works even in presence of transient network partitioning and Byzantine failure of nodes. The proposed mechanism is fully co-operative, and thus it is...