Minimizing gear losses caused by churning, windage and mesh friction is important if plant operating costs and environmental impact are to be minimized. This paper concentrates on mesh friction losses and associated scuffing risk. It describes the preliminary results from using a validated, 3-D Finite Element Analysis (FEA) and Tooth Contact Analysis (TCA) program to optimize cylindrical gears for low friction losses without compromising transmission error (TE), noise and power density. Some case studies and generic procedures for minimizing losses are presented. Future development and further validation work is discussed.