A FEM simulation program for induction hardening of sintered metal shafts was developed. An electromagnetic field analysis, a heat conduction analysis and an elastic-plastic stress analysis during the induction hardening process of sintered metal shafts were carried out for various hardening conditions by using this program, considering changes of the magnetic permeability, the resistivity, the thermal expansion coefficient and the yield stress with the temperature. The effects of the electric power and the frequency on the temperature and the stress during the hardening process, the residual stress and the hardened layer of sintered metal shafts were examined, and compared with those of wrought metal (S35C) shafts.