**Abstract:**
To protect electronic data, an approved cryptographic algorithm AES (Advanced Encryption Standard) is used. AES is a block oriented complex algorithm which have large amount of mathematical computations. For the large real time data requires a considerable amount of execution time for encryption and decryption, which may or may not be feasible for real time applications. This paper presents optimized AES algorithm in parallel fashion using OpenMP. Real time application requires faster encryption and decryption of data flows. Our approach used optimized strategy to process input data and gives faster results. Parallel computation gives better result if input data is large because parallel programming directive overhead is negligible in that case but it affects when data size is small. Our proposed system switches algorithm as per input data size for improved performance. Proposed optimized AES algorithm is suitable to be implemented in a mulit-core environment. The proposed design exhibits improved performance over present different approaches.

**Keywords:**
AES, OpenMP, Encryption, Decryption, Parallel programming.