This paper proposes a two-phased procedure for the optimum design of circular diamond saw blades. In Phase one, an accurate finite element (FE) model representing an actual saw blade is acquired by incorporating experimental and finite element analysis (FEA) frequencies to update the blade FE model. In Phase two, shape optimization of the radial slots on the blade, based on the updated geometrical parameters obtained in Phase one, is performed to maximize the frequency separation between the FEA results and the saw's operational speed, in an attempt to reduce the possibility of structural resonance. The effectiveness of the proposed two-phased system is demonstrated by the successful implementation of several numerical examples.