The recent fighting activities in various parts of the world have highlighted the need for accurate fire source detection on one hand and fast "sensor to shooter cycle" capabilities on the other. Both needs can be met by the SPOTLITE system which dramatically enhances the capability to rapidly engage hostile fire source with a minimum of casualties to friendly force and to innocent bystanders. Modular system design enable to meet each customer specific requirements and enable excellent future growth and upgrade potential. The design and built of a fire source detection system is governed by sets of requirements issued by the operators. This can be translated into the following design criteria: I) Long range, fast and accurate fire source detection capability. II) Different threat detection and classification capability. III) Threat investigation capability. IV) Fire source data distribution capability (Location, direction, video image, voice). V) Men portability. ) In order to meet these design criteria, an optimized concept was presented and exercised for the SPOTLITE system. Three major modular components were defined: I) Electro Optical Unit -Including FLIR camera, CCD camera, Laser Range Finder and Marker II) Electronic Unit -including system computer and electronic. III) Controller Station Unit - Including the HMI of the system. This article discusses the system's components definition and optimization processes, and also show how SPOTLITE designers successfully managed to introduce excellent solutions for other system parameters.© (2007) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.