The identification of system parameters plays an essential role in system modeling and control. This paper presents a parameter estimation for a permanent magnetic DC motor using the simulink design optimization method. The parameter estimation may be represented as an optimization problem. Firstly, the initial values of the DC motor parameters are extracted using the dynamic model through measuring the values of voltage, current, and speed of the motor. Then, these values are used as an initial value for simulink design optimization. The experimentally input- output data can be collected using a suggested microcontroller based circuit that will be used later for estimating the DC motor parameters by building a simulink model. Two optimization algorithms are used, the pattern search and the nonlinear least square. The results show that the nonlinear least square algorithm gives a more accurate result that almost approaches to the actual measured speed response of the motor. )