This paper presents the dynamic analysis and kinematic parameter optimization of a coupled linkage system for the purpose of employing the system in construction industry. So far, the kinematic optimization of wheel loaders was approached heuristically rather than utilizing elaborate theoretical examinations due to the complexity of coupled linkage structures. The results of the theoretical analysis and kinematic parameter optimization are presented in this paper. A wheel loader with Z-bar linkage was analyzed. For a given end-effector path, the linkage system was optimized to carry out effective motion while exhibiting minimum power consumption during operation. A modified principle of reduced system was applied in order to execute the dynamics analysis of the coupled linkage system. As a result, an optimal Z-bar linkage structure and a distribution of power consumption within the given conditions were obtained.