In this study, the effects of material variables on multi-response (performance characteristics) were investigated and, subsequently, parameters were optimized by considering these multiresponse outputs using Taguchi-based Grey relational analysis. The analysis revealed the optimal operating level for the control factors such that each response is close to its target value. The response table of means well corroborate with ANOVA results, showing that binder proportion, binder type, and biomass material having important contributions to optimization of pellet quality. The conformational test showed an overall improvement in pellet quality.