A power adjusting module applied in a wearable device and includes a sensor, a central processing unit (CPU). The sensor triggers a detect signal. The CPU determines if the wearable device is in a wearing mode or a free mode according to the detect signal. If the wearable device is determined in a wearing mode, the CPU generates an instruction for increasing a transmission power of an antenna of the wearable device; if the wearable device is determined in a free mode, the CPU generates an instruction for decreasing the transmission power of the antenna. A wearable device employing the power adjusting module is also provided.