In the history of technological advancements in networks and communicating devices, it is mandatory to have efficient mechanisms to detect the malwares before it corrupts the entire network or the device. Researchers have been adapting to various methodologies to detect malwares using static, dynamic and hybrid approaches. The proposed EFE(Efficient Feature Extraction)algorithm provides an efficient way to detect malwares in dynamic environment using API call sequences. It is clear from the findings that the proposed EFE (Efficient Feature Extraction) algorithm outperforms the other methods by providing a high detection rate when it is classified using SVM algorithm. It is also capable of detecting both known and unknown malwares effectively. © 2016, International Journal of Pharmacy and Technology. All rights reserved.