This paper presents a performance evaluation and optimization method of an air preheater based on routine operation data measured onsite at LANCO-UPCL, Nagarjuna thermal power plant Padubidri, Karnataka, India. The work focuses on the performance of Regenerative type air pre heater (model LAP 13494/2200). The performances were evaluated before and after radial sector plate clearance adjustments with air preheater tests, and improvement is seen along with air preheater optimization.