The performance improvement of a small-size integrated-type fully hydraulic breaker is studied in this paper. Mathematical modeling of the breaker is established and verified by experiment. Through sensitivity analysis using AMESim, the key design parameters are selected and nearly optimized to maximize the impact energy as well as to improve the dynamic characteristics such as the piston upper chamber pressure, piston and valve displacements. As a result, the impact energy, blows per minute(bpm) and output power are increased by 52.9%, 1%, and 55.6%, respectively compared with the current design. The dynamic characteristics of the piston upper chamber pressure, piston and valve displacements are also improved by the design change.