The effect of the tool-sheet interaction on formability enhancement in electromagnetic forming is investigated using FEM. A free bulging and a conical forming die with 0.7mm AL1050 sheet are used to evaluate damage evolution based on Gurson-Tvergaard-Needleman plasticity material model. The impact between the tool and sheet results in complex stress states including compressive hydrostatic stresses, which leads to a suppression of void growth and restrain ascending void volume fraction of the sheet. Therefore, the damage suppression due to the tool-sheet interaction can be the main factor contributing to the increased formability in the electromagnetic forming process.