This paper presents design optimization of a new Active Twist Rotor (ATR) blade and conducts its aeroelastic analysis in forward flight condition. In order to improve a twist actuation performance, the present ATR blade utilizes a single crystal piezoelectric fiber composite actuator and the blade cross-sectional layout is designed through an optimization procedure. The single crystal piezoelectric fiber composite actuator has excellent piezoelectric strain performance when compared with the previous piezoelectric fiber composites such as Active Fiber Composites (AFC) and Macro Fiber Composites (MFC). Further design optimization gives a cross-sectional layout that maximizes the static twist actuation while satisfying various blade design requirements. After the design optimization is completed successfully, an aeroelastic analysis of the present ATR blade in forward flight is conducted to confirm the efficiency in reducing the vibratory loads at both fixed- and rotating-systems. Numerical simulation shows that the present ATR blade utilizing single crystal piezoelectric fiber composites may reduce the vibratory loads significantly even with much lower input-voltage when compared with that used in the previous ATR blade. However, for an application of the present single crystal piezoelectric actuator to a full scaled rotor blade, several issues exist. Difficulty of manufacturing in a large size and severe brittleness in its material characteristics will need to be examined.