Design of high-performance power lines with advanced materials is indispensable to effectively eliminate losses in electrical power transmission and distribution (T&D) lines. In this study, aluminum conductor composite core with carbon nanostructure (ACCC–CNS) coating in a multilayered architecture is considered as a novel design alternative to conventional aluminum conductor steel-reinforced (ACSR) transmission line. In the multiphysics approach presented herein, first, electrothermal finite element analysis (FEA) of the ACSR line is performed to obtain its steady-state temperature for a given current. Subsequently, the sag of the ACSR line due to self-weight and thermal expansion is determined by performing thermostructural analysis employing an analytical model. The results are then verified with those obtained from the FEA of the ACSR line. The electrothermal finite element (FE) model and the thermostructural analytical model are then extended to the ACCC–CNS line. The results indicate that the ACCC–CNS line has higher current-carrying capacity (CCC) and lower sag compared to those of the ACSR line. Motivated by the improved performance of the ACCC–CNS line, a systematic parametric study is conducted in order to determine the optimum ampacity, core diameter, and span length. The findings of this study would provide insights into the optimal design of high-performance overhead power lines.