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A large proportion (about 33%) of the fuel energy is lost through exhaust gas in a gasoline engine. Electric turbo compounding (ETC) is a promising technology for gasoline engine exhaust energy recovery. In this paper, optimization of an ETC system for turbocharged gasoline engines is carried out. The ETC system has a turbo-generator that is in parallel with the turbocharger, the flow distribution between the turbocharger and the turbo-generator is controlled. The engine exhaust energy is recovered by the turbo-generator with fixed geometry turbine (FGT) or variable nozzle turbine (VNT). The design and control of the ETC system are optimized for best recovery of engine exhaust energy at engine full load and part load operating conditions. The system performance is studied by 1D simulation methods. The gasoline engine is modeled with the GT-POWER software and the turbochargers and turbo-generators are modeled with turbo through-flow models.