Stretch forming is one of the sheet metal forming process in which sheets are stretched to get the required shape. Formability of sheet metal is its ability to form when it is subjected to cold working process. Formability of a sheet metal is measured by Forming Limit Diagram (FLD/FLC). The limiting or failure strains in sheet metal forming are best represented by a forming limit curve which indicates the onset of necking over all possible combinations of strains in the plane. An attempt is made here to simulate the stretch forming of perforated sheet metals thereby studying its limiting strain. The uniaxial stretching and biaxial stretching are performed to get forming limit diagram. The influence of open area, and hole shape on FLD are studied. Perforated sheet is modelled with finite element method by using commercial FEA software ANSYS to calculate the major strain, minor strain and failure load for both uniaxial stretching and biaxial stretching of perforated sheet metal. It has been found that increasing in open area reduces the limiting major and minor strain. It has also been studied the influence of hole shape and punch shape on limiting major and minor strain. © 2006-2013 Asian Research Publishing Network (ARPN).