The Fine-blanking with negative clearance processing is very complicated process because the blanking clearance is negative clearance, for this reason, the state of stress and strain in sheet inside are also more complicated than conventional blanking. In the process of fine-blanking with negative, plastic deformation of the material is fiercer than conventional blanking, and the change of material inner structure and hardness is more intense because of plastic deformation. The deformation principle of fine-blanking deformation with negative clearance is analyzed by means of streamline and metallographic photograph and micro hardness. The impact of fine-blanking with negative clearance on the materials microstructure and hardness is discussed. The research result indicates that the hardening value is 1.8 times than original material itself and the maximum harden depth is 2.2mm for AISI-1045 steel in the process of blanking with negative clearance. Therefore, it could enhance fatigue strength and the working life of workpiece greatly because of the improvement of the material inner structure.