Abstract: The program of powder material constitutive model was developed in Fortran language and the model was implanted into finite element analysis system to simulate the compaction and densification process of iron powder. The validity of the model was verified by comparing the load strokes from simulation with experimental result. Subsequently, the model was used to simulate and analysis the forming and densification process of powder metallurgy(PM) pulley during compaction, and the density distribution of PM pulley was predicted. The density and its distribution were improved by compensating the powder-filling amount in low-density zone. In practice, the qualified PM pulley was compacted by using the optimized process, which indicates the optimized process can be taken as a reference for the compaction process design of this kind of parts.