Abstract: The kinetics of rarefied gases and plasmas are described by the Boltzmann equation and numerically approximated by the Direct Simulation Monte Carlo (DSMC) method. We present an optimization method for DSMC, derived from an augmented Lagrangian. After a forward (in time) solution of DSMC, adjoint variables are found by a backwards solver. They are equal to velocity derivatives of an objective function, which can then be optimized. This is joint work with Yunan Yang (Cornell) and Denis Silantyev (U Colorado, Colorado Springs).