In order to improve the impact performance, the structure of hydraulic hammer should be optimized. In this paper, the ranges of eight vital structure parameters of piston and reversing valve system of hydraulic hammer were selected firstly; and then found the best value of different parameters under experiments with the method of computer optimization and the parametric analysis method provided by ADAMS software. These methods worked and the best design values of parameters of hydraulic hammer were obtained. At last, the optimal impact energy of virtual prototype of hydraulic breaking hammer was calculated and compared with the original impact performance. The results reveal that impact performance of hydraulic hammer has been improved significantly.