In recent years, the AOR iterative method has been proposed for solving absolute value equations. This method has two parameters γ and ω. In this paper, we intend to find the optimal parameters of this method to improve convergence rate by suitable optimization techniques. Meanwhile, the convergence of the optimized AOR iterative method is discussed. It is both theoretically and experimentally demonstrated efficiency of the optimized AOR iterative method in contrast with the AOR and SOR methods