A new Finite State Machine (FSM) partitioning approach is proposed in this paper. Genetic Algorithm (GA) is employed to search the optimal or near optimal partition. A new cost function is used to guide the optimization. The proposed algorithm is implemented in C. A new design model is proposed to implement partitioned sub-FSMs, which makes the existing monolithic FSM state assignment be applicable to partitioned FSMs. The experiment results show that the proposed approach can reduce power dissipation up to 80%.