In order to minimize the power consumption of user equipments (UEs), and further to support various services and transmissions of large amount of data, the power saving mechanisms have been investigated for most remarkable wireless systems. In this paper, an improved dynamic discontinuous reception (D-DRX) scheme is presented for LTE system, which is able to adaptively adjust the inactivity timer and the sleep period of UEs’ receivers. Moreover, theoretical analysis based on the Markov chain is provided for the D-DRX scheme. Several numerical examples quantitatively show that the D-DRX scheme can capture various packet arrival patterns and scheduling behaviors of system to make a better tradeoff between power saving and packet delay by considering the length of packet queue.