Abstract-An Eulerian finite element formulation is presented for problems of large elastic-plastic flow. The method is based on Hill's variational principle for incremental deformations, and is ideally suited to isotropically hardening Prandtl-Reuss materials. Further, the formulation is given in a manner which allows any conventions finite element program, for "small strain" elastic-plastic analysis, to be simply and rigorously adapted to problems involving arbitrary amounts of deformation and arbitrary levels of stress in comparison to plastic deformation moduli. The method is applied to a necking bifurcation analysis of a bar in plane-strain tension.Tire paper closes with a unified general formulation of finite element equations, both Lagrangian and Eulerian, for large deformations, with arbitrary choice of the conjugate stress and strain measures. Further, a discussion is given of other proposed formulations for elastic-plastic finite element analysis at large strain, and the inadequacies of some of these are commented upon.