Mobile Ad-Hoc networks are self-configuring and self-organizing multi-hop wireless networks. They do not have any fixed infrastructure or centralized management. Due to this, the ad hoc networks are vulnerable to attacks. The routing protocol for MANET considered in this paper is AODV(Ad hoc On-demand Distance Vector Routing Protocol). Blackhole and Wormhole nodes are malicious nodes which degrade the performance of the network. They actively participate in the network and conform to forward packets to the destination. The Watchdog Mechanism is used to correct the network from both blackhole and wormhole attacks. The networks originally, with the attacks and after being prevented from attacks are compared on the basis of packets received, throughput, end-to-end delay and packet delivery ratio. ns2 software is used for the simulation.