An electronic design automation (EDA) tool for and method of optimizing a placement of process monitors (PMs) in an integrated circuit (IC). In one embodiment, the EDA tool includes: (1) a critical path/cell identifier configured to identify critical paths and critical cells in the IC, (2) a candidate PM position identifier coupled to the critical path/cell identifier and configured to identify a set of candidate positions for the PMs, (3) a cluster generator coupled to the critical path/cell identifier and configured to associate the critical cells to form clusters thereof and (4) a PM placement optimizer coupled to the candidate PM position identifier and the cluster generator and configured to place a PM within each of the clusters by selecting among the candidate positions.