Methanol synthesis from CO₂ is a key strategy for carbon capture and utilization, offering a viable solution to mitigate climate change. Direct synthesis of methanol not only reduces greenhouse gases but also produces valuable chemicals for industrial applications. The aim of this study is to model and optimize the methanol synthesis process from CO₂, focusing on maximizing methanol yield while minimizing CO₂ content in the product stream. In this work, a detailed methanol synthesis process simulation was developed using the Soave-Redlich-Kwong equation of state in the Aspen Plus commercial software environment. Pure CO₂ stream which comes out of post-combustion carbon capture process and renewable hydrogen stream are used. The results are compared with open literature sources. Apart from that, a sensitivity analysis was employed to evaluate the effects of pressure, temperature, and recirculation fraction on process efficiency. The results showed that the highest methanol yield of 76,838 kg/h was obtained at 80 bar, 276°C, and a recirculation fraction of 0.9. The lowest CO₂ content in the final product (73 kg/h) occurred at 80 bar, 220°C, and a recirculation fraction of 0.6. These findings demonstrate the trade-off between maximizing methanol output and reducing unreacted CO₂. In conclusion, optimal operating conditions for both high yield and low CO₂ content were identified, providing a foundation for further process refinement. Future work will involve developing a more complex multi-reactor model and conducting economic assessments for large-scale industrial implementation.