AVR parameter tuning for voltage control of generators has generally been done with the off-line open-circuit model of the synchronous generator. When the generator is connected on-line and operating with load the AVR operates in an entirely different environment from the open-circuit conditions. This paper describes a new method for AVR parameter tuning for on line conditions using SQP(Sequential Quadratic Programming) meshed with frequency response characteristics of linearized on-line system model. As the proposed method uses the un - line system model the tuned parameter sets show more optimal behavior in the on-line operating conditions. furthermore, as this method considers the performance indices that are needed for stable operation as constraints, AVR parameter sets that are tuned by this method could guarantee the stable performance, too.