Pressure vessel is a kind of special equipment which is involved in various industries. Once it is damaged, it will cause great loss to people’s life and property. The traditional elastic modulus reduction method for upper bound limit analysis of pressure vessels adopts the elastic-perfectly plastic material model. This method will result in waste of materials without considering the material strain hardening effect. So the material strain hardening effect is introduced into upper bound limit analysis. Firstly, the equivalent yield strength considering material strain hardening effect is established. Then, the formula of limit load multiplier which is expressed by the equivalent yield strength is derived based on the upper bound theorem. Combined with the strategy for elastic modulus adjustment, the elastic modulus reduction method for upper bound limit analysis of pressure vessels incorporating material strain hardening effect is constructed. The limitation of the elastic-perfectly plastic model for the upper bound analysis method is eliminated by the method proposed in this paper. The result calculated by this method is closer to the true limit load of pressure vessels.