In order to solve the problems of large tooth sliding, difficult material flow and poor stress conditions existing in the traditional rolling wheel during axial rolling forming, firstly, the tooth profile equations of cutting-in section, finishing section and exit section for the variable tooth thickness rolling wheel were derived, and the solution method of the minimum displacement coefficient for the cutting-in section of the variable tooth thickness rolling wheel was determined. Then, the finite element simulation on the axial rolling gradient forming process for cylindrical gears was carried out based on specific examples, and the stress and strain distribution of the workpiece and the material flow law of the forming process were analyzed. Finally, the forming experiments of workpieces with different numbers of teeth were conducted with the help of a self-made cylindrical gears axial rolling gradient forming platform. The results show that the minimum displacement coefficient of the cutting-in section where the workpiece and the small end of the variable tooth thickness rolling wheel do not interfere is -1.32. During the rolling process, the closer the material streamlines are to the workpiece surface, the greater the deformation, and the degree of change for the material streamlines on the left side of each tooth profile is greater than that on the right side. The variable tooth thickness rolling wheel is superior to the traditional rolling wheel in terms of contact uniformity, material flow velocity and stress conditions. In addition, the maximum errors of the average values for the tooth thickness, addendum circle radius and tooth root circle radius of the workpieces with tooth number z′1=42，46 and 50 are +0.010, -0.250 and +0.0413 mm, respectively, showing good agreement with the numerical simulation prediction results, verifying the reliability and practicability of this process.