The spark-ignited (SI) engine running on gaseous fuels produces 3-5% lesser power compared to the gasoline engines. The objective of this present work is to improve engine torque by optimizing spark timing, compression ratio and spark plug location. In this study, a 4-stroke, SI engine designed for gasoline fuel is converted completely to Liquefied Petroleum Gas (LPG)-fueled engine and operating parameters is optimized using CFD. A computational model is developed using commercial CFD software (STAR-CD), to simulate the crank angle-resolved in-cylinder pressure (P-θ). This model is validated against the experimental measurements and then used to optimize the above said parameters. The optimized LPG-fueled engine resulted in 15% increase in IMEP.