Punch-stretch tests to determine formability of type 304 stainless steel sheet were conducted using a hemispherical dome test. Sheets of 19.1 mm width and 177.8 mm width were stretched on a 101.6 mm diameter punch at punch rates between 0.042 to 2.12 mm/sec with three lubricant systems: a mineral seal oil, thin polytetrafluoroethelyne sheet with mineral seal oil, and silicone rubber with mineral seal oil. The resulting strain distributions were measured and the amount of martensite was determined by magnetic means. Increasing lubricity resulted in more uniform strain distributions while increased punch rates tended to decrease both strain and transformation distributions. High forming limit values were related to the formation of high and uniformly distributed martensite volume fractions during deformation. The results of this study are interpreted with an analysis of the effects of strain and temperature on strain induced martensite formation in metastable austenitic stainless steels.