Finite element simulation of the densification behaviour of porous cylindrical steel specimens under dynamic loading was undertaken in depth. An explicit analysis along with a plasticity model for porous solids was used. Stress, strain, and density distributions were determined with respect to time. The effects of stress waves and the reflection of these waves at the specimen boundary were clarified, the stress exerted on the die wall during the process was evaluated, and the effects of die wall friction, specimen size, and material properties on the densification process are presented. The predicted results compared with experimental data from earlier reported works were found to be in good agreement.