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In broadband wireless communications, the security of terminal equipment becomes an important problem. At present, EAX is a popular encryption & authentication mode for terminal equipment. But the algorithm of EAX has two disadvantages: CTR (counter mode) and OMAC (one-key CBC MAC), the result is that wireless communications will be attacked easily and will influence security and speed of terminal equipment.In this paper, firstly, we analysis the theory of EAX mode, pointing out why it should be optimized. Then we propose an optimized PEAX encryption & authentication mode based on the two disadvantages of EAX encryption & authentication mode, including optimized RCTR (random-CTR) mode based on CTR and optimized POMAC mode based on OMAC. Finally the optimized PEAX mode is simulated with Visual C++. It is proved that PEAX mode is correct and predominant with improving the security and speed of wireless communications further.