To optimize thermal dissipation efficiency for cooling high power LED modules is studied and analyzed using ANSYS CFX software and Taguchi method. In liquid-cooling system, four control factors are tested and compared in order to find the best cooling arrangement that are pump flow rate, fan power, cooling liquid type and k- value of thermal compound. The experimental results show that the importance of these cooling parameters applied to high power LED module are k-value of thermal compound, fan power, liquid type and pump flow rate in sequence. For a constant heating power of 90W from an LED lighting module, an optimal thermal resistance of 0.563K/W is obtained that shows a significant improved result then the conventional LED module’s. It has high potential in future high power LED applications.