Scalable Video Coding (SVC) is the extension of H.264/AVC. It has higher coding complexity and encoding time in SVC encoder. SVC is gaining great interest because of its ability and scalability to adapt in various network conditions. SVC allows partial transmission and decoding of a bitstream. This research deals with the fast mode decision algorithm for decreasing encoding time or fastening the mode decision process of the SVC encoder. Moreover, the performance of SVC over IEEE 802.11g wireless LAN has been evaluated using Scalable Video Evaluation Framework (SVEF). The fast mode decision scheme has been implemented and successfully decreased encoding time with negligible loss of the quality and bitrate requirements. The streaming simulation has also been performed using the SVEF simulator. The simulation result shows the proposed fast mode decision algorithm provides time saving up to 45% while maintaining video quality with negligible PSNR loss.