Wrinkling and tearing are major defects that usually occur in the deep-drawing process. This study presents a new sheet forming technology, together with machining small lubrication holes on the die shoulder. Deep drawing process of cylindrical cups with flange is investigated. Mechanical characteristics of die shoulder with small lubrication holes in deep drawing are analyzed. Numerical simulation and experimental methods are used to determine the influence on formability of machining small lubrication holes on the die shoulder. The results show that this new sheet forming process can improve formability and forming quality.