Transmission power control is the strategy in which a sensor node transmits at a lowest possible power level to maintain an error-free transmission being in dynamic multi-path fading environment, ensuring energy efficiency and interference minimization. In this paper, we propose a novel technique for power control while considering a realistic radio fading environment. The proposed technique is based on Kalman filter that iteratively estimates and predicts the upcoming received radio signal strength indicator (RSSI) values. Theoretical analysis and simulation results are given that show the better performance of the proposed methodology in comparison to existing power control strategies in time-varying fading propagation environment.