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Formula vehicles (FSAE) is confronting to increase vehicle performance by reducing the weight of the various components. In consideration of weight, knuckle is one of the serious things to look over it. Steering knuckle is a nonstandard or non-catalog component hooks up with the constraint wishbones, suspension, brake disc and wheel hub. It undergoes alternating loads subjected to different conditions. In this study we aim in reduction of weight in the knuckle with concession in the yield strength. Design a two different type of compact knuckle by using the solidworks software. The compact knuckle also provides desired direction to the vehicle and also reduces the unsprung mass. To make a compact knuckle enrich a rib in less stress areas. The difference in two knuckles is that the length of model 2 knuckle is more. If the length of the knuckle increases the stress acting on upper arm will be less when compared to the model 1.