A method and system for reducing perplexity in a speech recognition system based upon determined geographic location. In a mobile speech recognition system which processes input frames of speech against stored templates representing speech, a core library of speech templates is created and stored representing a basic vocabulary of speech. Multiple location-specific libraries of speech templates are also created and stored, each library containing speech templates representing a specialized vocabulary for a specific geographic location. The geographic location of the mobile speech recognition system is then periodically determined utilizing a cellular telephone system, a geopositioning satellite system or other similar systems and a particular one of the location-specific libraries of speech templates is identified for the current location of the system. Input frames of speech are then processed against the combination of the core library and the particular location-specific library to greatly enhance the accuracy and efficiency of speech recognition by the system. Each location-specific library preferably includes speech templates representative of location place names, proper names, and business establishments within a specific geographic location.