Purpose - This paper aims to present a new method, named as augmented polynomial dimensional decomposition (PDD) method, for robust design optimization (RDO) and reliability-based design optimization (RBDO) subject to mixed design variables comprising both distributional and structural design variables. Design/methodology/approach - The method involves a new augmented PDD of a high-dimensional stochastic response for statistical moments and reliability analyses; an integration of the augmented PDD, score functions, and finite-difference approximation for calculating the sensitivities of the first two moments and the failure probability with respect to distributional and structural design variables; and standard gradient-based optimization algorithms. Findings - New closed-form formulae are presented for the design sensitivities of moments that are simultaneously determined along with the moments. A finite-difference approximation integrated with the embedded Monte Carlo simulation of the augmented PDD is put forward for design sensitivities of the failure probability. Originality/value - In conjunction with the multi-point, single-step design process, the new method provides an efficient means to solve a general stochastic design problem entailing mixed design variables with a large design space. Numerical results, including a three-hole bracket design, indicate that the proposed methods provide accurate and computationally efficient sensitivity estimates and optimal solutions for RDO and RBDO problems.