This paper introduced the method of multidisciplinary design optimization. The conceptual model of permanent magnet retarder was developed to maximize the brake torque of the permanent magnet retarder. The influences of magnetic field parameters, structural design parameters, rotor parameters and permanent magnet temperature parameters on the behaviors performance of the permanent magnet retarder were discussed. The design variables included the radial width and the axis length of permanent magnet, the number of permanent magnet, the radius of rotor, the thickness of rotor, and the air gas. The multidisciplinary design optimization in this paper is an effective method for the global design optimization of the permanent magnet retarder.