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AVS-P7 is the recent mobile video coding standard of China. Currently, ARM cores are widely used in mobile applications because of their low power consumption. In this paper, a scheme of the AVS-P7decoder real-time implementation on 32 bit MCU RISC processor ARM920T (S3C2440) is presented. The algorithm, redundancy, structure and memory optimization methods to implement AVS-P7 real-time are discussed in detail. The experiment results demonstrate the success of our optimization techniques and the real-time implementation. The ADS, MCPS, PSNR and simulation results show that the proposed AVS-P7 decoder can decode the QVGA image sequence in real-time with high image quality and has low complexity and less memory requirement. AVS conformance test result confirms the proposed AVS-P7 decoder full compliance with AVS. The proposed AVS-P7 decoder can be applied in many real-time applications like Mobile phone and IPTV in the third generation communication.