The dimension of the final stage of cold forging a product is different from that of the die. The difference is influenced by various effects such as elastic deformation of the die and elastic recovery of the billet. In this study, in order to investigate the trend of elastic expansion of the die and elastic recovery of the billet, which is important to develop dimensional accuracy of the die, a finite element analysis was carried out using a commercial FEM code, DEFORM-3DTM. The die was designed according to the analysis results. Real elastic deformation of the die was obtained from both the rigid die model analysis and compensation by shrink fitting. Further, the forging process was evaluated by ductile fracture criteria. Finally, gear manufacturing based on the designed die is carried out. By measuring the results of the gear it was shown that the manufactured gear satisfies the JIS 6 class. The cold forging technology developed in this study to manufacture a gear part with a complicated shape is expected to be used effectively for production of other precision parts.