Cold steel sheet rolling process is a process of deformation by applying the friction force through the roller to the work piece to reduce the thickness of the work piece with good flatness, hardening, and strength. In cold steel sheet rolling process; depends on the shape of the final product and number of the rolls there are different types of cold rolling process and also rolling process is parameters dependent of metal forming process. The main goal of this research was analysis and optimization of process parameters in cold steel sheet rolling process. To determine the optimum values of the process parameters, it was essential to find their influences on the deformation behavior of the steel sheet metal. The significance of three important process parameters namely roller angular velocity, roller diameter and coefficient of friction on the cold steel sheet rolling process characteristics of AISI 1020 milled steel was determined. Their influences were investigated by mathematical analysis, finite element method and Taguchi method. Finite element package ABAQUS 6.14-2 was used to model the interactions of these parameters throughout the cold steel sheet rolling process with two-high tandem mill type. A reduced set of finite element simulations were carried out as per the Taguchi orthogonal array L16. The influence of roller angular velocity, roller diameter, and coefficient of friction on Von Mises stress had been investigated. In this thesis, optimum level of setting have been found out using smaller is the better types of signal to noise ratio analysis method. From signal-to-noise ratio analysis, the optimum cold sheet rolling process parameter values where roller angular velocity was 14 rad/s, roller diameter of 130 mm, and coefficient of friction of 0.1. And also, estimated Von Mises stress value of 543 MPa was found. Based on the estimated value of Von Mises stress the confidence interval also calculated and the values were minimum Von Mises stress value of 531.216 MPa and maximum Von Mises stress value of 556.536 MPa was found. Based on the values of parameters level of setting the confirmation test was done and optimal Von Mises stress value of 539.745 MPa was found. The value of Von Mises stress which comes from confirmation test was acceptable, because the confirmation test value was in the interval of minimum and maximum values of confidence interval.