Abstract. This paper presents a critical analysis of the AACS drivehost authentication scheme. A few weaknesses are identified which could lead to various attacks on the scheme. In particular, we observe that the scheme is susceptible to unknown key-share and man-in-the-middle attacks. Modifications of the scheme are suggested in order to provide better security. A proof of security of the modified scheme is also presented. The modified scheme achieves better efficiency than the original scheme. 