In this paper, by using an analytical optimization method, formulas for general optimum design of multi-layer compound cylinders are presented. For this purpose, considering the Tresca's yield criterion, the maximum shear stresses occurred simultaneously in inner radiuses of all layers, are minimized. The formulas for obtaining optimum values of layers radiuses, contact pressures, and radial interferences are derived. A technique for shrink-fitting of cylinders is also described and relationships for radial interferences and required temperature differences between cylinders for each step of the shrink-fitting process are derived using an analytical method. It is indicated that compound cylinders with more layers have higher internal pressure capacity for a specified weight. Three different examples are presented to show the effectiveness of the method.