Two-ray ground reflection model has been widely used as the propagation model to investigate the performance of an ad hoc network. But two-ray model is too simple to represent a real world network. A more realistic model namely shadowing propagation model has been used in this investigation. Under shadowing propagation model, a mobile node may receive a packet at a signal level that is below a required threshold level. This low signal level affects the routing protocol as well as the medium access control protocol of a network. An analytical model has been presented in this paper to investigate the shadowing effects on the network performance. The analytical model has been verified via simulation results. Simulation results show that the performance of a network becomes very poor if shadowing propagation model is used in compare to the simple two-ray model. Two solutions have also been proposed in this paper to overcome the effects of shadowing. One solution is a physical layer soluti...