Abstract The need for proper use of process simulators in engineering education is addressed through the modeling and optimization of a crude distillation unit. This exercise has been presented to Chemical Engineering students to help them relate concepts learned in class and the use of software tools widely available in the practice of engineering. The unit, composed of three distillation columns, is simulated using the equilibrium model and the Peng–Robinson equation of state; it is solved using a multiple‐step initialization and the Inside‐Out algorithm. An analysis of the system's degrees of freedom is made in order to specify a base case that is used as the starting point for the optimization. The maximization of the stabilized gasoline flow is achieved through the use of the Sequential Quadratic Programming (SPQ) algorithm. Throughout the exercise, the importance of understanding the mathematical model of the process and the algorithms used is emphasized. The exercise's effectiveness is evaluated by the students considering the achievement of ABET outcomes. © 2010 Wiley Periodicals, Inc. Comput Appl Eng Educ 21: 276–286, 2013