The ever increasing demand in enhancing the ability of processors to handle the complex and challenging processes has resulted in designing an efficient ALU. The speed of ALU depends greatly on the speed of multiplier and divider. Vedic Mathematics is the ancient system of mathematics which has a unique technique of calculations based on Sutras. Urdhva Triyagbhyam-Vedic method for multiplication is used and Paravartya method- Vedic Division is used to increase the speed of the ALU.