This paper aims at determining the parameters that influence explosive welding through numerical simulation using ANSYS AUTODYN and studying the effect of transverse load on Al-steel explosively bonded bi-metal. In this research, standoff distance, explosive ratio and flyer plate thickness as main parameters in the process of explosive welding simulation. Maximum pressure of 38.37kPa and high plastic strain is formed due to the detonation of the explosive. Due to this high pressure and plastic strain, temperature which is equals to of higher than the melting point of the parent plate is generated and transient fluid state for a very short duration is created at the interface of the plates. The reveals that, as explosive ratio increases, better weldment with wavy interface and strong bond is achieved. The result also shows, optimum standoff distance with angled orientation is found as better parameter of explosive welding for good bonding. A flyer plate thickness of 2mm, standoff distance 3mm with angled orientation and explosive ratio of 2 yields best weldment in the research. After explosive welding simulation is done, finite element analysis of three-point bending was conducted to evaluate the deflection and stress distribution. For a 25KN force applied on 7mm thick Al-steel bimetals, the stress becomes higher (above 2000MPa) at the bottom layer of the specimen. The stress and deformation for explosively welded aluminum steel bimetal is found to be less compared with simply bonded aluminum steel plates.