In this paper, we describe the development and optimization of an embedded Biuetooth solution on an SoC platform for real-time audio streaming over a Bluetooth wireless link. The solution includes embedded Bluetooth protocol stack and profile simplemented on a virtual operating system for portability, and other optimization techniques to fully exploit the benefits of multimedia-oriented SoC. The optimization techniques implemented in this paper are memory access minimization by using on-chip scratch pad memory, codec library optimization with DSP and parallel memory access instruction set, and dynamic audio quality adjustment regarding current wireless link status. Experimental results show that the optimized solution presented in this paper can support high-qualify audio streaming without the support of external memory.