The use of Mobile Robots in diverse sectors are increasing day by day. Nowadays, mobile robots are widely used in industrial sectors, but real-time path planning and collision free path tracking raises more challenging issues. A good path planning process for these mobile robots is needed in order for them to perform better. In path planning problems, the A∗ algorithm has been widely investigated and applied, but the cost and efficiency of the path is not completely taken into consideration. This algorithm has been tweaked and improved in a number of ways to facilitate path planning. Taking into account the variable-step-length A∗ search algorithm, which can take steps longer than one. This method uses a fixed step length and produces a better path than the A∗ Search algorithm. However, if the step length can be modified in the process as required, a more optimal direction can be obtained. As a result, this paper proposes an improved updated variable-step-length based A∗ algorithm that can update or change step length. This algorithm will efficiently find a path with a shorter length. In order to check the feasibility and efficiency of the proposed system, simulation and practical experiments are carried out. The findings show that the improved A∗ algorithm will increase the planned route’s safety and efficiency while also reducing the robot’s movement time in difficult terrain.