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In all design criteria, earthwork optimization is essential for the determination of optimal vertical alignment of a highway project. Actually, there can be numerous grade line alternatives for given ground elevations; thus, the objective is to find out the optimal vertical alignment causing the minimum cost considering several design constraints. Basically, this is a constrained nonlinear optimization problem, which can be solved by a multistage optimization technique. This article introduces a methodology for the vertical alignment optimization of a highway using dynamic programming approach. Results indicated that the introduced algorithm can be used successfully in the optimization of vertical highway alignment.