High speed MAC unit is utmost requirement of today's VLSI systems and digital signal processing applications like FFT, finite impulse response filters, convolution etc. The Digital Signal Processing (DSP) applications, usually involve many multiplications and accumulations. So, for real time signal processing applications, high speed Multiplier-ACcumulator (MAC) is always a key element to achieve a high-performance digital signal processing application. The speed of MAC depends greatly on the multiplier. In this paper the authors have proposed an improved time and area efficient MAC unit which employs booth multiplier.