This paper addresses the performance analysis and kinematic optimization of a 2-DoF translational parallel manipulator (TPM) with high speed and high precision. By combining the advantages of parallel manipulator and direct drive linear (DDL) motors, a new type of 2-DoF translational parallel manipulator is presented and explicit expressions of inverse and direct kinematic equations are derived. Based on the kinematic performance analysis of the 2-DoF TPM, a global and comprehensive performance index (GCPI), which is based on dexterity, stiffness, workspace and singularity avoidance, is proposed. The optimization results according to different performance indices are discussed. The proposed 2-DoF TPM is particularly suitable for applications requiring high-speed and high-precision motions.