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Developing countries like India is now highly relying on the alternate source of power generation to have uninterrupted power supply for their economic development. Diesel Power generator is one of the solutions in meeting the uninterrupted power requirement. In India, Power generating sets are having stringent emission norms and also the present government policies of removing subsides from Diesel fuel adding the additional burden on operating cost. As such researcher has a tough task to design the product considering the stringent requirement of legislation and performance. The main focus of this research work is to address performance necessities and the noise legislation. The detail methodology has been laid down to analyze and optimize performance and noise of Diesel Generator with respect to cooling system. Cooling fan with drive arrangement has been selected to study the canopied Diesel Generator performance and overall noise emission.