Secure sensor networks has received much attention in the last few years. A sensor network always works unattended possibly in a hostile environment such as a battlefield. In such environments, sensor networks are subject to node capture. Constrained energy,memory, and computational capabilities of sensor nodes mandate a clever design of security solutions to minimize overhead while maintaining secure communication over the lifespan of the network. In this paper, an authenticated dynamic key management scheme, ADKM has been proposed. It provides efficient, scalable, and survivable dynamic keying in a clustered sensor network with a large number of sensor nodes. ADKM employs a combinatorial exclusion basis system (EBS) for efficiency and one-way hash chains for authentication. Analysis of security and performance demonstrate that ADKM is efficient in security of sensor networks.