In this paper, an optimization-based nonlinear control strategy is applied to air path control of a turbocharged diesel engine. For this aim, the air-fuel ratio (AFR) and the pressure of exhaust manifold are controlled by calculating the air mass flow rates of turbocharger and exhaust gas recirculation. Controlling AFR which affects engine power, fuel consumption and exhaust emissions, is carried out by calculating the air mass flow rate with the assumption of known fuel path. For air path modelling, the mean value model which is a suitable method with low computational time is used to achieve the air path equations. Air mass flow is calculated by the developed control laws and applied by the turbocharger and exhaust gas recirculation. In the proposed control method, the nonlinear system response is firstly predicted by Taylor series expansion and then the optimal control law is developed by minimizing the difference between the desired response and the actual response. To compare the performance of the proposed optimal controller, a sliding mode controller has been also designed. The simulation results show that the rate of air mass and the pressure of exhaust manifold are close to their desired values and consequently the AFR is well controlled. Therefore, the designed controller with optimal inputs can successfully cope with the nonlinearities existing in engine dynamics model.