A System and Method for Providing an Improved Standby Mode for Infrared Data Transceivers is disclosed. Standby Mode for Infrared Data Transceivers. The device and system of the present invention includes a discovery signal receiver and power actuator module that consumes a fraction of the power of a conventional Ir transceiver system. The preferred device and system may be integral to a conventional Ir transceiver, or it may be a stand-alone system or device. Furthermore, the device and system are configured to activate full power to the Ir transceiver system upon recognition of an Ir discovery signal, and this power-up signal might also be user-initiated in some preferred embodiments. The preferred switch means for providing full power to the Ir transceiver system is in an open position while the Ir-enabled appliance is in a standby or sleep mode. The preferred device and system recognize a 9600 baud Ir discovery signal.