Abstract: Considering the routing optimization issue in nested NEtwork MObility (NEMO), an adaptive routing optimization scheme based on cost function is proposed. In the scheme, depending on the communication and mobility pattern, the communication of nested NEMO is divided into three communication models, including binding update model, data routing model and balanced communication model; Different routing optimization strategy is chosen to balance the binding update signaling and the data tunneling cost to minimize the total cost in the models. The simulation results show that the scheme can shorten tunnel length and transmission delay, achieve the minimum cost of the communication in nested NEMO and have good adaptability for network topology dynamic changes.