A simulator based on rigid-plastic finite element method is developed for simulating the plastic flow of material in forging processes. In the forging process likes backward extrusion, a workpiece normally undergoes large deformation around the tool corners that causes severe distortion of elements in finite element analysis. Since the distorted elements may induce instability of numerical calculation and divergence of nonlinear solution in finite element analysis, a computational technique of using the Euler’s fixed meshing method is proposed to deal with large deformation problem by replacing the conventional way of applying complicated remeshing schemes when using the Lagrange’s elements. With this method, the initial elements are generated to fix into a specified analytical region with particles implanted as markers to form the body of a workpiece. The particles are allowed to flow between the elements after each deformation step to show the deforming pattern of material. The proposed method is found to be effective in simulating complicated material flow inside die cavity which has many sharp edges, and also the extrusion of relatively slender parts like fins. In this paper, the formulation of rigid-plastic finite element method based on plasticity theory for slightly compressible material is introduced, and the advantages of the proposed method as compared to conventional one are discussed.