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Hole expansion of a dual phase steel, DP600, was numerically investigated using a damage-based constitutive law to predict failure. The parameters governing void nucleation and coalescence were identified from an extensive review of the x-ray micro-tomography data available in the literature to ensure physically-sound predictions of damage evolution. A recently proposed technique to experimentally quantify work-hardening and damage in the shear-affected zone is incorporated into the damage model to enable fracture predictions of holes with sheared edges. Finite-element simulations of a hole expansion test with a conical punch were performed for both a punched and milled hole edge condition and the predicted hole expansion ratios are in very good agreement with the experiment values reported by several researchers.