Compared with PDC bit, diamond impregnated bit have advantages in strong abrasive and hard formation according to theoretical research and field pilot experience. But the design and parameter optimization of diamond impregnated bit for different kinds of formations haven't been done until now, and this block its application in oilfield. The influence of bit matrix formula, polycrystalline diamond grain size and concentration on rock-breaking efficiency and bit service life were investigated based on drilling experiments. The optimized matrix formula of diamond impregnated bit for drilling in quartz sandstone formation and granite formation were obtained separately according to the experiment result. It also can be observed that with the increase of the polycrystalline diamond grain size and concentration, the drill speed of the diamond impregnated bit increase and then decrease, while the wear loss keep decrease. 80 is the critical mesh for polycrystalline diamond grain size which can let the bit keep high drill speed and ensure its service life. The optimization result for polycrystalline diamond concentration is 20% for quartz sandstone and granite formations. The influence of diamond impregnated bit parameters on drilling performance was studied and the optimized parameter values were obtained for the two kinds of strong abrasive and hard formations of quartz sandstone and granite. The research result can used to select and design diamond impregnated bits for different kinds of formations, and then improve the drill performance and enhance its application.