Jitter buffer at the receiver of a Time Division Multiplexing over packet network is modelled as a M/G/1/K queue with a vacation for the first packet arriving at an empty queue. In addition to this, vacation also occurs with some probability termed as 'restore probability'. Subsequent packets which arrive in either case, are served at a service rate, which is constant. The parameters of the queue considered are the restore probability, buffer size and delay in service to the first packet arriving at the empty queue or the vacation period. The performance measures considered are variance of departure process, waiting time in the queue and the loss probability. These measures are computed numerically to gain insight into the performance of the jitter buffer in controlling the jitter, while simultaneously keeping the delay suffered by the packet in the queue, minimum and subsequently arrive at suitable parameters values. The third performance measure, the loss probability is also introduced in the optimization problem and the queue is analyzed for a suitable operating point in terms of the queueing parameters to suit its application as a receiver jitter buffer in a TDM over packet network. © 2017 IEEE.