Authenticated Encryption (AE) is the latest cryptographic algorithm standard introduced through CAESAR (Com-petition for Authenticated Encryption: Security, Applicability, and Robustness). AE schemes provide a process for simultaneously achieving the security goals of confidentiality and integrity assurance. The constructions of authentication encryption is secure and efficient to protect the modern electronic information systems. In this research paper, we proposed an Improved AEGIS-128 Algorithm (i-AEGIS-128) for improving the standard AEGIS-128 algorithm to enhance the performance in which quarter round-based AES (Advanced Encryption Standard) is used for the encryption and decryption process. The proposed i-AEGIS-128 is based on an AEGIS-128 AES-round permutation modification for hardware implementation. The Results of i-AEGIS-128 on Intel(R)Core(TM) i7-3700 Processor running at 3.40 GHz speed with 16GB of RAM using C/C++ and HDL (Hardware Description Language) languages and platforms to determine the encryption and decryption time, throughput processing unit memory during encryption and decryption. Finally we compared the efficiency and power analysis of the hardware. The i-AEGIS-128 algorithm relies on the use of ¼ AES-round in authentication encryption to reduce the area consumed during processing, perform fast encryption and decryption, use less power and provide the best efficiency.