The fine blanking process with a stepped-edge punch was researched by finite element method (FEM) and experiment investigation. Finite element analysis showed that the hydrostatic stress of the blank around the edges changes a little during fine blanking process using a stepped-edge punch with negative clearance. The burnish zone of sheared surface increases with the increase of the relative negative clearance. The reasonable forming parameters were presented by a lot of experiment investigations. Parts of three kinds of materials, Q235 steel, copper and industrial aluminum, were formed using fine blanking process with a stepped-edge punch. Full burnish zone were obsearved for all the parts.