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IEEE 802.16m Multihop relay network is assiduously developing to accomplish high capacity services with large cell coverage. However due to lack of physical boundaries and injection of distributed relays, it is known to be more vulnerable to security holes as a trade off. In this paper we propose a new distributed authentication key scheme for Multihop Relays IEEE 802.16m network service. The propose scheme uses decode and forward relays with localized authentication. The scheme works in distributed authentication to authenticate Subscriber station (SS) and Relay stations (RS) at initial network entry. Our new improved distributed scheme utilizes healthy security issues and the Multihop Relay network application features. Both analysis and performance evaluation shows that our scheme can significantly increases the network throughput and reduce the security holes as well as communication overheads.