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Computational Fluid Dynamics (CFD) analysis software is being developed by many companies and it is a valuable tool in designing hydraulic components. CFD analysis can provide accurate predictions of pressure drop in fluid flow paths and offer insight into the primary source of losses. When used in conjunction with solid modeling design software, the process of optimizing a design can be accomplished much quicker, reducing development costs and time. This paper presents a CFD analysis of an existing valve design and compares it to an improved design. The source of the primary losses of the existing valve will be identified which will lead to modifications to design features that minimize those losses. These modifications will be modeled and analyzed for predicted improvements. Pressure drop tests will be conducted on the original design to verify the analysis. Internal pressure loading of valve parts cannot easily be determined by testing.