Overlay metrology target design is an essential step prior to performing overlay measurements. This step is done through the optimization of target parameters for a given process stack. A simulation tool is therefore used to improve measurement performances. This work shows how our Metrology Target Design (MTD) simulator helps significantly in the target design process. We show the role of film and Optical CD measurements in improving significantly the fidelity of the simulations. We demonstrate that for various target design parameters we are capable of predicting measured performance metrics by simulations and correctly rank various designs performances.