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It is becoming increasingly essential to predict the exact behavior of cold forging die during the forging process and it is also important to optimize the die design for its durability and to reduce the production cost of the die. Optimization of cold forging die design is required to reduce the production cost of die as well as the forged part and also to increase the accuracy of the die and the forged part. Since the past few years computer aided engineering (CAE) techniques have been widely used for research in metal forming. Amongst them finite element analyses (FEA) have been greatly successful to provide the understanding of metal flow and die stresses for different forming processes. The present work is a review of the existing die design techniques which are used in forging process to enhance the die design and to optimize die design process which will improve the performance of die. In cold forging the die will under go high loads, hence it is essential to know Fatigue behavior and Fatigue Failure of the die when it has been under go cyclic loading. The study end up with future challenges of the die design and its processes, the approaches adopted to develop an optimum system that can fulfill the customer demand.