In this chapter, the reader gets acquainted with the philosophy of performance-based design, its principles, and an overview of the procedures for performance evaluation of structures. The essential prerequisites of optimal performance-based design, including nonlinear analysis, optimization algorithms, and nonlinear sensitivity analysis, are introduced. The methods of nonlinear analysis and optimization are briefly presented, and the formulation of optimal performance-based design with emphasis on deterministic type, rather than probabilistic- (or reliability)-based formulation is discussed in detail. It is revealed how real performance-based design is tied to optimization, and the reason is given for why, without optimization algorithms, multilevel performance-based design is almost impossible.