Cold expansion is an efficient way to improve the fatigue life of an open hole. The residual stress fields of cold expansion holes are vital for key components designing, manufacturing and fatigue properties assessment. In this paper, three finite element models have been established to study the residual stress fields of cold expansion hole, experiments were carried out to measure the residual stress of cold expansion hole and verify simulation results. Three groups of specimens with different cold expansion levels are examined by fatigue test. The fracture surfaces of specimens are observed by scanning electron microscope. The finite element method (FEM) results show, with interference values develop, the maximum values of circumferential residual compressive/tensile stresses increase in “infinite” and “finite” domain, and a higher positive stress values are obtained at the boundary of “finite” domain. The effects of the friction between the mandrel and the hole’s surface and two cold expansion techniques on the distribution of residual stress is local, which only affects the radial residual stress around the maximum value and the circumferential residual stress near the hole’s edge. Crack always initiates near entrance face and the crack propagation speed along transverse direction is faster than that along axial direction.