This article describes the considerations which led to the current optical design of the new 1.5 m solar telescope GREGOR. The result is Gregorian design with two real foci in the optical train. The telescope includes a relay optic with a pupil image used by a high order adaptive optics system (AO). The optical design is described in detail and performance characteristics are given. Finally we show some verification results which prove that – without atmospheric effects – the completed telescope reaches a diffraction limited performance (© 2012 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim)