Powder forging is a combined technology of powder metallurgy and precision hot forging. Recently, the technology is developing rapidly because of its economic merits, especially in automotive part manufacturing. In the present study, the finite element technique was developed to predict density variation during P/M forging and the technique was applied to analysis of forging of a P/M connecting rod. Although deformation mode of the connecting rod was quite complex, several sections were selected and analyzed under an assumption of asymmetric or plane strain deformation. It was found that some modifications were necessary on the cross section of the beam portion. Therefore, the cross section was modified repeatedly until a satisfactory result of the analysis was obtained. On the other hand, no modifications were necessary in the ring and the pin portions. It is anticipated that the developed technique can be used to optimize preform design and manufacturing processes in P/M forging, which are highly critical to produce successful products in practice.