In order to offload base station (BS) traffic and to enhance efficiency of spectrum, operators can activate many Device-to-Device (D2D) pairs or links in LTE networks. This increases the overall spectral efficiency because the same Resource Blocks (RBs) are used across cellular UEs (CUEs) (i.e., all UEs connected to BS for both C-Plane and D-plane communication) and D2D links (i.e., where the UEs are connected to BS only for C-plane communication). However, significant interference problems can be caused by D2D communications as the same RBs are being shared. In our work, we address this problem by proposing a novel scheduling algorithm, Efficient Scheduling and Power control Algorithm for D2Ds (ESPAD), which reuses the same RBs and tries to maximize the overall network throughput without affecting the CUEs throughput. ESPAD algorithm also ensures that Signal to Noise plus Interference Ratio (SINR) for each of the D2D links is maintained above a certain predefined threshold. The aforementioned properties of ESPAD algorithm makes sure that the CUEs do not experience very high interference from the D2Ds. It is observed that even when the SINRdrop (i.e., maximum permissible drop in SINR of CUEs) is as high as 10 dB, there is no drastic decrease in CUEs throughput (only 3.78%). We also compare our algorithm against other algorithms and show that D2D throughput improves drastically without undermining CUEs throughput. © 2016 IEEE.