Giant magnetostrictive transducer with micro and nano precision has a wide application prospect in the field of remote sensing. However, excessive heat loss of components could generate during the energy conversion and transfer from electric energy to magnetic energy, and magnetic energy to mechanical energy, thereby affecting its long-term service and also reducing energy utilization. In this paper, a new magnetostrictive transducer is proposed and its excitation coil, internal and external magnetic circuit are optimized from the perspective of reducing heat loss. With the help of theoretical and finite element analysis, the response law between key parameters and heat loss of key components are summarized, which provides a basis for reducing heat loss. Finally, according to the optimization scheme, the prototype is processed, and the temperature rise and dynamic output performance of the transducer are tested by constructing an experimental setup. The results show that the transducer has a low temperature rise and good frequency response characteristics, which can provide support for long-time precise actuation on-orbit.