As a crucial arithmetic logic unit, the multiplier plays a significant role in digital signal processing. However, multiplication operations often require a large number of calculations and logic gates, leading to increased circuit complexity and power consumption. To enhance the performance and efficiency of multipliers, this paper presents an optimization analysis based on the Wallace Tree and Booth algorithms. The Wallace Tree algorithm decomposes multiplication operations into multiple stages and employs both separate operations and bit-level parallelism to accelerate multiplication, achieving efficient parallel multiplication computations and reducing both latency and area complexity of multiplication. On the other hand, the Booth algorithm is an optimization method for signed binary multiplication. By introducing the concept of Booth encoding, it transforms signed multiplication into unsigned multiplication, thereby reducing the number of multiplication operations. This paper analyses the application and research progress of the Wallace Tree and Booth algorithms in the field of multiplier optimization to improve computational speed and reduce power consumption of multipliers.