In this paper, stress design optimization was carried out using both the theoretical method and finite element method. The bending stress of the concerned part is obtained from the total momentum for centriod adjustment, while the high stress concentration at the blade root and tenon was relieved by the unloading design at the tenon. The stress at the blade root and the tenon throat has dropped by 110 and 70 MPa. Afterwards, the shroud stress concentration was mitigated by shroud shape optimization. the stress at the transition between the shroud and blade is reduced from 885 to 750 MPa. Meanwhile, the uneven contact status was improved by pre-deformation improvement. Finally, the aerodynamic stability of the optimized blade was assessed by the energy method. The minimum aerodynamic damping ratio was 2.45E−03, which would offer sufficient damping to consume the vibration energy. The findings in the paper would provide good reference for shrouded blade design.