The objective of this paper is to demonstrate a possibility of optimizing the fixed gear ratios of an automatic transmission by using a special modeling and simulation technique. It is a problem to design the set of ratios in general, and especially for transient driving situations. Sometimes there is a lack of systematic methods to optimize dynamic systems, and particularly vehicle powertrain systems, which is the focus of this paper.The techniques used involve a dynamic engine model and a refined gearbox model. To give each set of ratios a fair judgement, the gearbox control system is calibrated for each new set. The influence of a set of ratios on the vehicle acceleration performance and fuel economy in a given driving cycle is evaluated against an optimization criterion. Calibration of the gearbox control system is performed with stationary analysis. This is the most suitable way with respect to the input signals of gearbox control systems of today. On the other hand, the driving cycle simulation is dynamic, to achieve the desired accuracy.Traditionally, the set of ratios is designed considering only stationary analysis. The proposed method using dynamic analysis gives better gearbox optimization, for the desired transportation task. Design recommendations can be made by following the procedure presented.