The present invention relates to an authenticated key exchange technique, and discloses a three-party password-based authenticated key exchange method which is provided with a privacy protection. The method comprises the following steps: an initialization step, exchanging the reserved information by two client subscribers which prepare to do key exchange; a client initialization stage, ciphering the information respectively by two client subscribers which prepare to do key exchange with the respective passwords and sharing passwords in the server and transmitting to the server together with the non-ciphered information; a server procession stage, when the server receives the request information from the client, using an oblivious transfer mechanism for processing these information and generating different returning information aiming at each one in two client subscribers, and then respectively transmitting these information to corresponding client subscriber; a client authorization step, when the client receives the returning information of the server, adopting a mechanism of normal key exchange for processing the returned information based on the password itself in order to generate the seed of the conversation key, and generating the authorization information with the seed of the conversation key for transmitting to the subscriber of the other side; and a conversation key generating step, if the authorization information from the subscriber of the other side is authorized, generating the conversation key with the seed of the conversation key. Compared with prior art, theplan not only realizes the three-party password-based authenticated key exchange, but also simultaneously and effectively protects the privacy information comprising identity and participation actionof the client subscriber which participates the key exchange.