Environmental pollution is of great concern; hence the emission norms for the diesel engines are made more stringent. The purpose of this work is to develop a process to optimize the FIS parameters and select a most suitable FIS by simulation to meet the target emissions.During the combustion optimization exercise of diesel engine, different hardware combinations like injector, HPP etc are matched through testing to achieve the required performance and emissions. The process requires the real testing of the engine on engine dynamometer with various hardware combinations, which is expensive and time consuming.A simulation model of diesel FIS is constructed using ‘AVL Hydsim’. The model is validated by comparing the predicted and the experimental results. The validated model is used for further work. Critical parameters were listed based on the sensitivity analysis on the base model. Based on the target performance and emission limits the overall desired characteristics or features of the FIS were formulated. The critical parameters were optimized for achieving the desired FIS characteristics. With the help of optimized results the inputs for FIS were given to FIS manufacturer.