A Mathematical model with one prey species living in two different habitats
and a predator where the predatory rate diminishes at low population densi
ty of prey is investigated. Two habitats are separated by a barrier and pre
y species is able to disperse among two different habitats at some cost of
the population. The stability analysis is carried out for non-zero equilibr
ium values. Using rate of conversion of the prey to predator as bifurcation
parameter, the necessary and sufficient condition for a Hopf bifurcation t
o occur are derived. It is shown numerically that predation rate does not a
lways have stabilizing effect for the prey-predator system.