An optimization of thermal management system in a gasoline engine is considered to improve thermal efficiency by minimizing the cost increase without largely changing the configuration of engine system. In this study, the influence of water temperature and intake air temperature on thermal efficiency were investigated using an inline four-cylinder 1.2L gasoline engine. In addition, one-dimensional engine simulations were conducted by using a software of GT-SUITE. Brake thermal efficiency for different engine speeds and loads could be quantitatively predicted with changing the cooling water temperature in the cylinder head. Then, in order to predict the improvement of the fuel consumption in actual use, vehicle mode running simulation and general-purpose engine transient mode simulation were carried out by GT-SUITE. As a result, it was found that by controlling the temperatures of the cooling water and intake gas, thermal efficiency can be improved by several percent.