The paper discusses state-space generalized predictive control and the preview control algorithms. The optimization procedure used in the derivation of predictive control algorithms is considered. The performance index associated with the generalized predictive controller (GPC) is examined and compared with the linear quadratic (LQ) optimal control formulation used in preview control. A new performance index and consequently a new algorithm is proposed dynamic performance predictive controller (DPPC) that combines the features of both GPC and preview controller. This algorithm minimizes the performance index through a dynamic optimization. A simple example illustrates the features of the three algorithms and prompts a discussion on what is actually minimized in predictive control. The DPPC algorithm, derived in this paper, provides for a minimum of the predictive performance index. The differences and similarities between the preview control and the predictive control have been discussed and optimization approach of predictive control has been explained.