Network coding is promising alternative to traditional content distribution system in P2P networks. The block scheduling problem in P2P network is simplified, since intermediate node to perform randomized block selection for arbitrary information mixture, resulting in more efficient content dissemination in P2P network. Traditionally it is performed by random pick and code mechanisms where the packets are chosen randomly for generating the coded packets. After generating the coded packets, it will be sent to their neighboring peers in the network. These packets are called as redundant packet or non innovative packet if it's not useful to those peers. Existing network code based content distribution mechanisms didn't address the problem of reducing the number of redundant coded packets transmission. Hence it increases the number of information flow in the network code based content distribution and makes the network congested. In this paper, an efficient packet selection mechanism, called as Intelligent Packet Coding (IPC) is developed. It improves the efficiency of a network code based content distribution in P2P network further. Each peer in the network can do the intelligent network coding operation with the help of distribution table. This table is created by source node based on the set of packets send to each peers in the group and get updated for each reception/transmission of the coded packets to and from other peers. NS2 simulator is used to simulate the proposed mechanism. Simulation result shows that IPC outperforms the traditional method of network coding in terms time required to download entire content by all the peers in the network and improves the throughput. © 2019 IEEE.