The optimal design of a large-size fully hydraulic breaker is studied in this paper. Mathematical modeling of the breaker is established and verified by experiments. Through sensitivity analysis, the key design parameters of the breaker are selected, which mostly affect the performance of the breaker. Taguchi method is used to optimize the key design parameters in order to maximize the output power through simulation using AMESim. As a result, the impact energy is increased by 18.9% and the output power is increased by 12.4% compared with the current design. The pressure pulsation in the supply line is also reduced by the optimization.