Experiments dealing with the upsetting of sintered materials have resulted in the determination of a forming limit in terms of the local copressive and tenslis. As the specimen is comperessed, a plot of tensile strain versus compressive strain can be made. Fracture occurs when the strain parth intersects the forming limit. Once the fracture locus is defined by an experimental method, it is possible to use the Finite Element Method to determine if some upsetting operation will exhibit a free surface crack during a deformation process. In this study, a finite element program has been developed to analyze the deformation processes of sintered metals in upesetting. At the same time, products are inverstigated. The locus strains are then calualted and possible defects leading to material failure are checked. The calculated results argree well with the experimental results.