Monopropellant propulsion systems are widely used especially for low cost attitude control or orbit correction (orbit maintenance). To optimize the total propulsion system, subsystems should be optimized. Chemical decomposition, aerothermodynamics, and structure disciplines demand different optimum condition such as tank pressure, catalyst bed length and diameter, catalyst bed pressure, and nozzle geometry. Subsystem conflicts can be solved by multidisciplinary design optimization (MDO) technique with simultaneous optimization of all subsystems with respect to any criteria and limitations. In this paper, monopropellant propulsion system design algorithm is presented and the results of the proposed algorithm are validated. Then, multidisciplinary design optimization of hydrazine propulsion system is proposed. The goal of optimization can be selected as minimizing the total mass (including propellant), minimizing the propellant mass (maximizing the Isp), or minimizing the dry mass. Minimum total mass, minimum propellant mass, and minimum dry mass are derived using MDO technique. It is shown that minimum total mass, minimum dry mass, and minimum propellant mass take place in different conditions. The optimum parameters include bed-loading, inlet pressure, mass flow, nozzle geometry, catalyst bed length and diameter, propellant tank mass, specific impulse (Isp), and feeding mass which are derived using genetic algorithm (GA).