Oil shortages and environmental pollution are attracting worldwide attention incrementally. Hybrid falls within one of the effective techniques for those two problems. Taking the loader with high energy consumption and high emission as the target, combined with the hydraulic hybrid technology with high power density and strong energy storage capacity, the parallel hydraulic hybrid loader (PHHL) based on brake energy regeneration is proposed. Firstly, the dynamic models of the key components of the PHHL are established, and the parameters of the part which coincides with the ordinary loader are corrected based on the V-type duty cycle. Then, consid-ering the energy recovery efficiency as well as the characteristics of the loader from the V-type duty cycle, the parameters for several major parts of the energy regeneration system (ERS) were calculated and matched. Then, based on the initial matching, the improved adaptive genetic al-gorithm (AGA) is employed to optimize the control variable of the control strategy and the design parameters of ERS to enhance the economic benefit and performance of the ERS. Furthermore, a simulation validation was conducted. Simulation results show that the ERS with optimized pa-rameters could improve the fuel-saving effect by 25% compared to the ERS with initial parameters, which indicated the rationality of the optimized parameters. Finally, the fuel consumption test of the PHHL prototype under the V-type duty cycle is performed. The results show that the PHHL with the optimization scheme can achieve 9.12% fuel saving, which is on the brink of the potential of brake energy recovery and verifies the feasibility of applying hydraulic hybrid technology on the loader.