This document describes an area optimized and pipelined FPGA implementation of the AES encryption and decryption algorithm. The AES algorithm is divided into four 32-bit units that are processed sequentially with a clock. This reduces the chip size compared to previous implementations that processed the full 128-bit blocks. Pipelining is used to increase throughput. The implementation is tested on a Spartan 3 FPGA using VHDL. It aims to achieve both high throughput and reduced hardware usage compared to prior designs.