A new comprehensive approach to select cutting parameters for damage-free drilling in carbon fiber reinforced epoxy composite material is presented. The approach is based on a combination of Taguchi's experimental analysis technique and a multi-objective optimization criterion. The optimization objective includes the contributing effects of the drilling performance measures: delamination, damage width, surface roughness, and drilling thrust force. A hybrid process model based on a database of experimental results together with numerical methods for data interpolation are used to relate drilling parameters to the drilling performance measures. Case studies are presented to demonstrate the application of this method in the determination of optimum drilling conditions for damage-free drilling in BMS 8-256 composite laminate. A process map based on the results is presented as a tool for drilling process design and optimization for the investigated tool/material combination.