This paper obtained work piece of fine blanking with negative clearance by experiment. The microstructure and fractography photograph in regions like rollover zone, shearing band, under sheared surface and fracture band were scanned by instrument of scanning electron microscope (SEM-JSM-6360LV). The fine-blanking with negative clearance makes the metal deformation regions into a state of triaxial stress precise and it causes an intense metallic stream that brings about inter-dislocation and distortion of metallic crystal product under the action of stronger force, so the metallic crystal is reset and the isometric metallic crystal of shearing zone is staved, sloped and pulled and it appears as dense lined and strip crystal. The paper analyzes the full course of producing and development of micro crack in the ejecting stage in the fine-blanking processing of negative clearance. And the course of final rupture is also analyzed. The relationship curve of blanking stroke and micro hardness is measured by Vickers Hardness instrument (MH-6). The deforming principle of fine blanking deformation with negative clearance is analyzed by means of microstructure, metallographic photograph and micro hardness.