Deform-3D software was applied to analyze the material flow of the closed extruding fine blanking gear. It was analyzed that the effects of counterpunch forces on the material flow characteristics in deformation zone and the swirling flow in scrap. The result shows that the counterpunch force can effectively delay the disappearance of swirling flow and the generation of tensile stress, then restrain the cracks appearing early. By analyzing the flow characteristics of tip and root of tooth, it is obtained that the material flow rate on tooth tip is much greater than tooth root in axial direction, and there is almost not material flow in horizontal sections; the compressive stress is greater in tooth root. The simulated result was confirmed by metallographic fiber in different sections.