This paper is the study on stress analysis of spur gear using a finite element method. Gear drives constitute very important mechanisms in transmitting mechanical power processes compromising several cost effective and engineering advantages. The load transmission occurred by the contacting surfaces arises variable elastic deformations which are being evaluated through finite element analysis. The automatic gear design program is developed to model gear shape precisely. This gear design system developed was used by pre-processor of FEM packages. The distribution of stresses at contacting surfaces was examined when a pair of gear contact.