This paper deals with simulation studies on surface densification of PM gears by rolling process using finite element method. The PM gear is considered as a porous continuum and analysis is performed using constitutive relations based on Gurson model for porous materials. The influence of various parameters such as initial position of mating gears, braking torque applied, friction between mating surfaces and roll stock allowance on the process have been studied. The density obtained by the process is highly influenced by the braking torque applied. The results presented provide a better understanding of the PM gear rolling process.