The presented work examines the aerodynamic challenges of podded ultra high-bypass engines installed on a short/mid range low noise hybrid wing body configuration. After assessing the initial engine integration design, sensitivity studies regarding the impact of the freestream Mach number, engine position, and the engine incidence angle on the interference drag are discussed. Then, shape modifications of the nacelle and the center-body based on 2D RANS optimizations are presented. The results indicate that in order to reduce the initially massive interference drag, the overall aircraft design either has to allow for a modified engine position or for reshaping of the center-body’s upper surface. With the latter, an overall drag reduction of –44 % was achieved.