In this paper diagonal optimal algorithm is proposed to solve fully fuzzy transportation problems using the approach of Diagonal optimal method. In this proposed method the Fuzzy optimal solution of a fuzzy Transportation problem is obtained by using optimal diagonal method [17]. Yager's ranking technique is used to order the fuzzy numbers. This method can be applied to solve all kinds of fuzzy transportation problem such as unbalanced fuzzy TP, fuzzy Degeneracy problem, fuzzy TP with prohibited routes and many more. © 2020 ©2006-2019 Asian Research Publishing Network (ARPN). All rights reserved.