Wind energy is one of the best renewable sources for power generation since many years because wind is clean and unbounded. Small scale wind turbine (less than 100 kW rated) have been used for many application like home, villages and telecommunication facilities to produce electricity. The global growths in small scale wind turbine help to ensure the safety reliability and performance. This paper report simulation and optimization of small scale wind energy system for rural area and small scale turbine operated at 4m/s or above the 4m/s wind speed. This research is done for optimal design of wind energy system. The HOMER tool is use to simulate and design of small scale wind system for village. The proposed small scale wind system consists with wind turbine, generator, batteries, and converter. A typical model is constructed with HOMER tool.