This study presents the integrated modeling approach to simulate the proton exchange membrane [PEM] fuel cell system for vehicle application. The fuel cell system consisting of stack and balance of plant (BOP) was simulated with MATLAB/Simulink environment to estimate the maximum system power and investigate the effect of BOP component sizing on system performance and efficiency. The PEM fuel cell stack model was established by using a semi-empirical modeling. To maximize the net efficiency of fuel cell system, multi-variable optimization code was adopted. Using this method, the optimized operating values were obtained according to various system net power levels. The fuel cell model established was co-linked to AVL CRUISE, a vehicle simulation package. Through the vehicle simulation software, the fuel economy of fuel cell powered electric vehicle for two types of driving cycles was presented and compared. It is expected that this study can be effectively employed in the basic BOP component sizing and in establishing system operation map with respect to net power level of fuel cell system.