An incremental updated Lagrangian elasto-plastic finite element method(FEM) was employed to analyze the hole-flanging with the ironing of circulate plates using a pre-determined smaller hole at the center of the two-ply sheet metals. An extended rmin technique was employed such that each incremental step size can be determined not only by the yielding of an element Gaussian point, but also by the change under the boundary conditions of penetration, separation, and the alternation of the sliding-sticking state of friction along the tool-sheet interface. Two-ply sheet metals are generally composed of metals that have different mechanical properties. Thus, the forming process of these materials is complicated. A number of experiments and simulations were performed using a conical punch with a cone angle of 45°. The experimental results were compared with FEM-simulated results. It is found that using the elasto-plastic FEM can effectively predict the generation process of the deformed shape until unloading. The calculated sheet geometries and the relationship between punch load and punch travel are in good agreement with the experimental data.