Hanger isolators are the critical components of automobile exhaust system, and its static and dynamic elastic characteristics affect directly performance of vibration isolation. The static and dynamic elastic characteristics of a typical hanger isolator was investigated by using nonlinear Finite Element Method. Finite element model of the hanger isolator was established first, then suitable constitutive equations selected, static and dynamic elastic characteristics simulated and static stiffness of the hanger isolator in calculated. Under the sinusoidal excitation at different frequency the dynamic stiffness and damping angle were calculated by cross-power spectrum through dynamic simulation. Finally, the structure of the hanger isolator was optimized by orthogonal experiment to enhance performance of the isolator.