In the paper a self-adjusting hydraulic machine for combination forming of upsetting and extruding is systematacially presented in terms of mechanical principle, design principle, machine construction, design of the key components and working routine. The machine is designed with the following features: The lower movable beam is adjusted by the ejecting cylinder, the upper upsetting beam is reset by the backstroke slide rods, and the upsetting cylinders communicate with the gas-liquid accumulators. These features make the machine conformation compact, save both the backstroke cylinder of the upper upsetting beam and the upsetting cylinder of the lower movable beam, and simplify the hydraulic system. Furthermore, the machine can resolve such problems as incomplete filling at the addendum position, microcracks at the dedendum position, greater force and lower die life during precision forging of spur gears. In the paper a self-adjusting hydraulic machine for combination forming of upsetting and extruding is systematacially presented in terms of mechanical principle, design principle, machine construction, design of the key components and working routine. The machine is designed with the following features: The lower movable beam is adjusted by the ejecting cylinder, the upper upsetting beam is reset by the backstroke slide rods, and the upsetting cylinders communicate with the gas-liquid accumulators. These features make the machine conformation compact, save both the backstroke cylinder of the upper upsetting beam and the upsetting cylinder of the lower movable beam, and simplify the hydraulic system. Further, the machine can resolve such problems as incomplete filling at the addendum position, microcracks at the dedendum position, greater force and lower die life during precision forging of spur gears.