Access Control list plays a very important role in network security. Proper combination of rules for ACLs can close loop holes in the system, this minimizing security breaches. An ACL can improvise network performance up to a good level by limiting the traffic controls the areas that can be accessible to any device or user. However, if ACL is not managed properly and efficiently it causes packet latency and degrades the network performance. In this paper we present various optimization mechanisms to achieve an optimal ACL which reduces the Packet latency. We also proposed an efficient optimization algorithm to optimize the ACL to enhance network performance. We also discuss the importance of ACL and the various rule anomalies.