This document describes the optimization of an 8051 microcontroller design using VLSI techniques. The original 8051 design operated at 12 MHz with a large chip area due to its 3.5um process technology. The authors synthesized the RTL code of the 8051 using a 90nm process, which allowed it to operate at 150 MHz with a 77249.814850um2 chip area, 12.5x faster and 30% smaller than the original. Floorplanning, placement, routing, and other physical design steps were performed. Power consumption was reduced by at least 32% to 593.9899uW compared to other 8051 derivatives. The optimized design demonstrated significant improvements in speed, area, and power consumption through