Superconductor is consolidated, for required current capacity, with proper numbers of basic strands which are multifilamentary composites. Althouth superconductors are perfectly loss-free under DC conditions of current and field, AC losses occur under time-varying condition of the current and field. The AC losses are a controllable inherent characteristics of supercondectors. The AC losses dependent on the changing rate of current and field can be reduced by reducing the filament diameter. On the other hand, finer filament results in manufacturing cost increase. Therefore, in this paper optimization technique of superconductor for SMES is proposed from the viewpoint of AC loss reduction and manufacturing cost increase. The case study shows that the technique can be effectively used for the design of superconductor for SMES, appreciating the influence of various parameters related to superconductor itself and operating condition of SMES. As a result of the case study, it is confirmed that the technique is more effective for the design of superconductor for SMES for electric power power system stabilization rather then SMES for energy storage.