Dual-phase (DP) steels are widely used in sheet metal stamping. However, they are typically characterized by low hole expansion ratios. Since hole flanging is very often applied to sheet metal parts, solutions for improving hole flangeability are needed. In this study, high-speed punch rotation is applied in hole flanging of DP 1000 to generate frictional heat and increase formability. The flanges were formed using a punch rotating at 8000 rev/min and varying axial feeds. A maximum hole expansion ratio (HER) of 3.6 is obtained in the tests compared to ~1.58 in conventional hole flanging. The high formability is explained by the high temperature recorded in the process. The effects of temperature and strain rate on the formability of DP 1000 are examined by tensile tests conducted at different conditions. The tensile tests show an increase in formability at high temperatures. Optical microscopy at the flange edge reveals a change in the microstructure of the steel from the characteristic dual phase to a martensitic structure with elongated grains.