Differential in Gear Box play vital role in Tractors for assisting it in turning and also to take straight path. Light weight machine always have advantage in terms of fuel economy and performance. Weight optimized rotating part have additional benefits of saving power loss, against stationary dead weight. Differential Housing is such a part, which rotates during the vehicle motion and torque transmission. This paper describes a method by which weight of the Differential Housing is optimized. In this particular body of work, additional constraints of avoiding any change in existing cold forged parts like Bevel Gear & Pinion. This also have additional benefit of enhanced flow of Oil inside Differential Housing for better lubrication of Bevel Gears and Pinion.This resulted in weight saving of Differential Housing and finally fuel economy of Tractor.