Theoretical modeling of the redshift-space power spectrum of galaxies is crucially important to correctly extract cosmological information from redshift surveys. The task is complicated by the nonlinear biasing and redshift space distortion effects, which change with halo mass, and by the wide distribution of halo masses and their occupations by galaxies. One of the main modeling challenges is the existence of satellite galaxies that have both radial distribution and large virial velocities inside halos, a phenomenon known as the Finger-of-God effect. We present a model for the galaxy power spectrum of in which we decompose a given galaxy sample into central and satellite galaxies and relate different contributions to 1- and 2-halo terms in a halo model. Our primary goal is to ensure that any parameters that we introduce have physically meaningful values, and are not just fitting parameters. For the 2-halo terms we use the previously developed RSD modeling of halos in the context of distribution function and perturbation theory approach. This term needs to be multiplied by the effect of radial distances and velocities of satellites inside the halo. To this one needs to add the 1-halo terms, which are non-perturbative. We show that the real space 1-halo terms can be modeled as almost constant, with the finite extent of the satellites inside the halo inducing a small k^2R^2 term, where R is related to the size of the halo. We adopt a similar model for FoG in redshift space, ensuring that FoG velocity dispersion is related to the halo mass. For FoG k^2 type expansions do not work and FoG resummation must be used instead. We test several damping functions to model the velocity dispersion FoG effect. Applying the formalism to mock galaxies modeled after the "CMASS" sample of the BOSS survey, we find that our predictions for the redshift-space power spectra are accurate up to k~0.4Mpc/h.