As traditional fossil fuels become scarcer and more attention is given to environmental impact of the combustion of fossil fuels, for next-generation aircraft, the focus of development will mainly be on reducing fuel consumption. Open rotor engines have the advantage over conventional turbofans that they are expected to perform 25% to 30% better in terms of fuel consumption. The topic of this thesis focuses on one of the current challenges related to open rotor configurations; the unwanted unsteady effects imposed on the aerodynamic characteristics of a propeller, imposed by an upstream pylon. There is a potential for reducing undesired propeller-pylon installation effects by taking these effects into account in aerodynamic design process of the propeller. A propeller design optimization routine is implemented that includes a parametric modeling tool, a low- and high-fidelity performance analysis method and an existing installation effects performance model.