Optimization plays a pivotal role in modern pharmaceutical product development, ensuring the creation of safe, effective, and high-quality dosage forms with efficient resource utilization. With the growing complexity of drug formulations, particularly those involving nanocarriers, solid dispersions, and controlled-release systems, systematic optimization techniques have become indispensable. This review highlights the various optimization strategies applied across formulation and process development stages, including statistical design of experiments (DoE), response surface methodology (RSM), factorial design, Box–Behnken design, and artificial intelligence (AI)-assisted optimization. Emphasis is placed on the integration of Quality by Design (QbD) principles, where critical quality attributes (CQAs), critical material attributes (CMAs), and critical process parameters (CPPs) are identified and optimized to achieve robust product performance. The article further discusses the role of advanced computational modeling, simulation tools, and multi-criteria decision-making approaches in reducing experimental workload and improving predictability. Collectively, these techniques provide a scientific framework for rational formulation design, efficient scale-up, and regulatory compliance. The review concludes that the adoption of modern optimization methodologies not only accelerates product development timelines but also enhances the quality, reproducibility, and commercial viability of pharmaceutical products.