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This paper presents the development and implementation of an Analytical Target Cascading (ATC) Multi-disciplinary Design Optimisation (MDO) framework for the steady state engine calibration optimisation problem. The case is made that the ATC offers a convenient framework for the engine calibration optimisation problem based on steady state engine test data collected at specified engine speed / load points, which is naturally structured on 2 hierarchical levels: the ‘Global’ level, associated with performance over a drive cycle, and ‘Local’ level, relating to engine operation at each speed / load point. The case study of a diesel engine was considered to study the application of the ATC framework to a calibration optimisation problem. The paper describes the analysis and mathematical formulation of the diesel engine calibration optimisation as an ATC framework, and its Matlab implementation with gradient based and evolutionary optimisation algorithms.