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According to the character of straw pellet fuel cold molding technology, the compressing process was modeled by Finite Element Modeling (FEM) structure analysis tools. This indicated the variation laws between the stress and the strain, and the influence of the structure parameters of the die on the stress and the strain. It’s concluded from the work that when the length-to-diameter ratio of the die was 5.2 and the conicity of the die was 45o, the compress molding showed better degree of bonding and finish. This provided theoretical evidence for the study of the molding mechanism of the straw pellet and the selection of the structure parameters of the die.