Problem statement: Sheet metal extrusion is a process in which the punch penetrates one surface of the sheet metal material to cause it to extrude and flow toward the outlet of the die. Therefore, the process can invent different thickness of sheet metal work piece. From these advantages on the sheet metal extrusion, nowadays, it is generally used in many manufacturing of industrial elements fields. The Sheet Metal Extrusions in Fine Blanking (SME-FB) advantages, over a conventional extrusion, are possible due to a blank holder force, a counterpunch force and a large die radius. However, the selection on those parameter values affects on the material flow and the surface quality on the extrusion parts also. Namely, it causes the crack surface and shrinkage failure which are the general problems in the SME-FB. Approach: Objective of this research was to study the effect of die radius on the SME-FB surface which investigated the formation of the failure defection with respect to the several die radiuses by using the Finite Element Method (FEM). Results: From the results, it indicated that applying the small die radius caused the material flow difficult resulting in the decreasing of smooth surface. Vice versa, in the case of large die radius, the material flow easy is resulting in the increasing of smooth surface. Conclusion: The FEM simulation results of a larger die radius will cause the residual stress at work piece.