The objective of this study is to find optimum governor coefficient for which fluctuation of engine speed is minimum, for given value of engine, turbo-charger, inlet and exhaust manifold characteristics. Current study uses the Wishnegradski Stability Diagram as suggested by V. I. Krutov [1], which graphically represents the dynamic response of governor based on the engine differential equation which is of the third order. For the load type of L = B cos (wt): The objective function is designed to minimize the integral squared error over a time period T, which is taken as 5seconds. The constraints are formed using Wishnegradski Stability Curves which are mathematically represented as x > 0 and xy – 1 > 0 y > 0, where x, y are non-dimensional parameters depending on engine characteristics and Ne is the error function. From the experimental data obtained by test on a marine turbo-charged, 6 cylinder engine model KTA-1150C-600 of the Kirloskar make, the optimized values of Kp, Ki and Kd were obtained as 798.94, 41.50 and 1137.4 respectively and corresponding objective function is 2.2202e-07 and amplitude of speed fluctuation is 2.6642e-04 rpm.