We observe that the classical mediation analysis gives the direct effect involving the inputs of mediated variable leading that the direct effect and indirect effect do not serve their roles appropriately. We then propose a new mediation analysis with interaction identification for determining a clean direct effect for defining the total effect and then the effect decomposition. Power comparison between the Baron and Kenny’ s test and a new test based on our approach for indirect effect detection has been done and their corresponding efficiencies for detection are displayed. A new indirect effect proportion then is proposed for further investigation.