The exponentially growing need for higher data rates and the ubiquitous usage of smartphones has led to unprecedented issues in providing seamless communication while satisfying bandwidth constraints. Enabling Device-to-Device (D2D) communication in the millimeter-wave (mm-Wave) network enhances throughput and bandwidth but at the cost of higher pathloss attenuation. Also, D2D communication introduces interference in the traditional cellular network (CN), leading to degradation in the system performance. Thus, the proposed scheme applies dynamic mode selection criteria for efficient D2D communication in a 5G mm-Wave CN. The radius of coverage of D2D users (D2Ds) is derived for switching of the modes, i.e. from inner to outer. The outer mode switching occurs when the D2Ds suffer from extensive pathloss attenuation or with increase in coverage radius. Furthermore, power optimization is done to obtain optimal D2D transmit power thereby, enhancing the data rate, which is solved using the Lagrangian dual optimization technique. The performance metric, coverage probability is also derived which depicts the capability of the proposed scheme at a higher pathloss attenuation maintaining the Quality-of-Service (QoS) constraint. Simulation results prove the efficacy of the proposed scheme. Finally, the proposed scheme is compared with the state-of-the-art schemes which further proves the superiority of the proposed scheme in terms of better efficiency.