Over a network to secure information and to remain confidential cryptography plays a very important role in today’s life. Cryptography is an method of converting information to a non-understandable form and then being able to convert it to the understandable form by the recipient. High level of security can be used for computing small power using lightweight stream ciphers. The new pipelined approach is proposed for Stream encryption means each letter one by one followed by the changing the encryption key after each letter. Here the work presents the design, simulation, and synthesis. Further the design is developed using cadence EDA physical design tools for optimizations on constraints like area, delay and low power consumption. Validation of data transmission in secure form (i.e., audio, image and text) using rabbit stream cipher algorithm is done. The rabbit algorithm is implemented using Verilog HDL simulated using Modelsim 10.4a synthesis using Xilinx ISE Design Suit 14.2 and also CADENCE.