This book introduces a new optimization algorithm for simulation-based design of systems with multi-modal, nonlinear, black box objective functions. The algorithm extends the recently introduced adaptive multi-modal optimization by incorporating surrogate modeling features similar to response surface methods (RSM). The resulting optimization algorithm has reduced computational intensity and is therefore well-suited for optimization of expensive black box objective functions. The algorithm produces progressively accurate surrogate models around the local minima which can be used for post-optimization studies such as sensitivity and tolerance analyses with minimal computational effort. This algorithm is suitable for optimal design of complex engineering systems and enhances the design cycle by enabling computationally affordable uncertainty analysis. The mathematical basis of the algorithm is explained in detail. The book also demonstrates the effectiveness of the algorithm using comparative optimization of several multi-modal objective functions. It also shows several practical applications of the algorithm in the design of complex power and power-electronic systems.