This paper focuses on dynamic analysis and frame optimization of a FSAE racing car frame. Firstly, a Multi-Body Dynamic (MBD) model of the racing car is established using ADAMS/Car. The forces and torques of the mechanical joints between the frame and suspensions are calculated in various extreme working conditions. Secondly, the strength, stiffness and free vibration modes of the frame are analyzed using Finite Element Analysis (FEA). The extracted forces and torques in the first step are used as boundary conditions in FEA. The FEA results suggest that the size of the frame may be not reasonable. Thirdly, the size of the frame is optimized to achieve minimized weight. Meanwhile the strength and stiffness of the frame are constrained. The optimization results reveal that the optimization methodology is powerful in lightweight design of the frame.