Multi-wavelength Raman lidar has been widely used in profiling aerosol optical properties. The accuracy of measured aerosol optical properties largely depends on sophisticated lidar data retrieval algorithms. Commonly to retrieve aerosol optical properties of Raman lidar, the extinction-related Ångström exponent (EAE) is assumed (to be 1). This value usually generally differs from the true value (called EAE deviation) and adds uncertainty to the retrieved aerosol optical properties. Lidar-signal noise and EAE-deviation are two important error sources for retrieving aerosol optical properties. As the measurement accuracy of Raman lidar has been greatly improved in recent years, the influence of signal noise on retrieval results becomes relatively small, and the uncertainty of retrieved aerosol optical properties caused by an EAE-deviation becomes nonnegligible, especially in scenes that EAE deviation is large. In this study, an iteration retrieval algorithm is proposed to obtain more reliable EAE based on multi-wavelength Raman lidar. Results from this iteration are more precise values of aerosol optical properties. Three atmospheric scenarios where aerosol distribution and the values of EAE vary widely were simulated with a Monte Carlo method to analyze the characteristics and robustness of the iterative algorithm. The results show that the proposed iterative algorithm can eliminate the systematic errors of aerosol optical properties retrieved by traditional retrieval method. The EAEs after iteration does converge to the true value, and the accuracy of aerosol optical properties can be greatly improved, especially for the particle backscatter coefficient and lidar ratio, which has been improved by more than 10% in most cases, and even more than 30%. In addition, field observations data of a three-wavelength Raman lidar are analyzed to illustrate the necessity and reliability of the proposed iterative retrieval algorithm.