Majority of the existing approaches handling NFRs limit themselves to model analysis whereas the method disclosed herein includes model driven code generation for NFR optimized models. The method and system disclosed herein provides a model driven approach to contradictory NFR resolution, which generates the NFR code into the functional application code. Embodiments herein provide automated and optimized code generation for contradictory NFRs. The method uses separate but related NFR and mitigation models. Further performs model to code transformation only after the Mitigation model is calculated based on NFR models. The method relies on model to code transformation for generating the application code and other artifacts for an optimized NFR. The approach provided is applicable till the application is deployed in an optimized environment.