A new approach of elastic finite element to die stress analysis in forging is presented in this paper. The die set analysis problem is formulated by considering contact problems under both mechanical and thermal loads. In the approach, amount of shrink fit is controlled by thermal load i.e., temperature difference between die insert and shrink fits. The loading conditions are extracted automatically from a forging simulator. The predicted solution is compared with analytical one and it has been shown that the predicted results are in excellent agreement with the analytical ones. An application example is given, which was found in a cold forging company.