Densification behavior of iron powder under cold stepped plastic deformation was studied. Experimental data were also obtained for iron powder under cold stepped plastic deformation. The elastoplastic constitutive equation based on yield function of Shima and Oyane was implemented into a finite element program (ABAQUS) to simulate compaction responses of i.on powder during cold stepped plastic deformation. Finite element calculations were compared with experimental data for densification, deformed geometry and density distribution. The agreement between finite element results and experimental data was good for iron powder.