The objective of this study is to develop a reliable and efficient design tool that can be used in chemically reacting flows. The flow analysis is based on axisymmetric Euler and the finite rate reaction equations. These coupled equations are solved by using Newton's method. Both numerical and analytical methods are used to calculate Jacobian matrices. Sensitivities are evaluated by using adjoint method. The performance of the optimization method is demonstrated for a rocket motor nozzle design.