A methodology to thermo-mechanically optimize a piston thermal barrier coating over a full drive cycle was established. The optimization objective was to minimize the heat transfer to the engine wall while maintaining structural integrity of the coating. Over 800 candidate materials were investigated and the optimization required more than one million non-road transient drive cycle calculations; real materials were investigated to ensure a realizable result and the existence of thermal and mechanical properties. High computational efficiency was achieved using a recently developed analytical heat transfer technique for multilayer engine walls. An uncoupled approach was utilized for the optimization, wherein the gas temperature and heat transfer coefficient profiles from a fully coupled and calibrated baseline model over the 20-min drive cycle were employed. The coating/piston interface temperature was constrained to be below the maximum piston service temperature limit. The durability was assessed using a recently developed analytical coating delamination framework for engine in-cylinder coatings based on the energy release rate when a crack forms. Results are presented for a mechanically unconstrained optimization and for cases constrained to three fixed levels of drive-cycle maximum energy release rate, and also constrained by the individual material’s toughness. The best-performing coating materials identified were verified using the fully coupled system-level model, which compared well to the uncoupled predictions. A study on the effect of adding a sealing layer to some high-performing, but porous, coatings showed a reduction in fuel consumption benefit and an increased exhaust temperature over the cycle, but the system still outperformed the uncoated case. The results of the study elucidate the importance of including engine performance and mechanical failure considerations in thermal barrier coating design.