Exhaust gas recirculation (EGR) is an emission control technology that allows for a significant reduction in NOx emissions from light- and heavy-duty diesel engines. The primary effects of EGR are a lower flame temperature and a lower oxygen concentration of the working fluid in the combustion chamber. A high pressure loop (HPL)EGR is characterized by a fast response, especially at lower speeds, but is only applicable if the turbine upstream pressure is sufficiently higher than the boost pressure. On the contrary, for the low pressure loop (LPL) EGR, a positive differential pressure between the turbine outlet and the compressor inlet is generally available. However, a LPL EGR is characterized by a slow response, especially at low and moderate speeds. In this study, of the future types of EGR systems, the dual-loop EGR system (which has the combined features of the high-pressure loop EGR and the low-pressure loop EGR) was developed and was optimized under five selected operating conditions using a commercial engine simulation program (GT-POWER) and the DOE method. Finally, significant improvements in the engine exhaust emissions and performance were obtained by controlling several major variables.