This paper describes an analysis on performance of R744-R404A cascade refrigeration system with internal heat exchanger to optimize the design for the operating parameters of the system. The operating parameters considered in this study include subcooling and superheating degree, internal heat exchanger and compression efficiency, evaporating and condensing temperature in the R744 low- and R404A high-temperature cycle and temperature difference of cascade heat exchanger. The main results are summarized as follows : COP of cascade refrigeration system increases with the increasing of compression efficiency, but decreases with the increasing temperature difference of cascade heat exchanger. Also, the COP increases with the increasing of internal heat exchanger efficiency in high-temperature cycle, but decreases with that in low-temperature cycle. Therefore, internal heat exchanger efficiency, compressor efficiency and temperature difference of cascade heat exchanger on R744-R404A cascade refrigeration system have an effect on the COP of this system.