The various embodiments herein provide a method and system for optimizing Closed Subscriber Group (CSG) selection in wireless communication. The method comprising steps of initiating, by a user equipment (UE), a manual CSG selection, verifying if a manual CSG selection request is new, storing a registered public land mobile network (RPLMN) and a corresponding public land mobile network (PLMN) Selection mode if the CSG selection request is new, changing a PLMN selection mode and the CSG selection mode to MANUAL, registering the UE on to a user selected CSG cell, storing one or more parameters associated with the user selected CSG cell if the registration is successful irrespective of CSG cell belonging to RPLMN or different PLMN and selecting the user selected CSG cell using a stored PLMN ID and a CSG ID combination in the current PLMN selection mode during power off and power on.