Three fractured tool dies used for industrial cold forging have been investigated using light optical microscopy and scanning electron microscopy. Two of the specimens were produced using the traditional Böhler P/M steel grade s790, while the lastspecimen was a third generation P/M steel produced using new technology developed by Böhler. All three steels have the same nominal composition of alloying elements. The failure in both types of material occurs as a crack formation at a notch inside ofthe tool. Generally the cold forging dies constructed in third generation steels have a longer lifetime than the ones constructed in traditional steel, which is connected to differences in micro-structure. Focus has been put on differences in the size anddistribution of car-bides. It is found that the third generation steel contains smaller and more finely dis-persed carbides and has an increased resistance towards abrasive wear compared with the traditional P/M steel.