It is desired to operate tractor engines at or near maximum torque much of the time in field operation to increase fuel efficiency. To do this it is necessary to reduce engine speed and to shift gears to higher ratios as frequently as possible. Because of load variations in most drawbar work and inconvenience in gear shift, however, gear-type transmission are usually set in one ratio at unnecessarily high engine speeds, and engine-torque variations are used to compensate for changes in drawbar load. As a result, the most of time the tractor is not operated efficiently in terms of fuel consumption and work output. The objective of this study was to develop an automatic control system which is able to operate a tractor equipped with gear transmission under the optimal condition in terms of fuel efficiency with automatic governor setting and gear shift. An indoor experimental test set which can be used to simulate tractor operation, control engine speed and transmission ratio was developed in the previous paper. In this paper, the performance of the optimal operation system is reported. Through a series of tests, it was found that the automatic control system for optimal operation of tractors with gear transmission had a satisfactory performance.