This paper proposes an efficient traceback method for parallel hardware implementation of the Viterbi algorithm. Compared to the conventional Viterbi algorithm where initial state for traceback is selected arbitrarily the proposed algorithm decides decoding output by analyzing the survivor paths of consecutive tracebacks. This makes Viterbi algorithm more efficient in error correction event when more than one survivor path exists. The proposed traceback algorithm together with its hardware realization is presented in this paper. Experimental results show tht the proposed algorithms is efficient in error correction in noisy channels compared to the existing algorithms.