The cold rolling technology of thread was rapidly developed due to its high efficiency, low cost and perfect property of its production. But theoretical researches on the precise forming were very few, especially for the hollow parts. In the rolling process, empirical (trial and error) methods have been a mainly part. This is unfavorable for the development of the new technology. In this paper, numerical simulation of the cold rolling process of hollow thread was studied. The DEFORM soft was used to perform the simulation work. The stress field, strain field and velocity field in the workpiece were obtained. The change curve of the rolling force and the relation curve of tangential force and torque were obtained. The failure process of hollow thread in the rolling process was also simulated. The failure reason of thin wall thread in the rolling process was analyzed according to the change of effective stress in the workpiece. The result is well agreement with theoretical ones. The further research will be done to promote the application of numerical simulation in the cold rolling of hollow thread parts.