Abstracts Material flow stress in cutting is difficult to measure experimentally due to the complex deformation behavior involved. In this work, a finite element (FE) simulation of cutting and a theoretical flow stress model including plastic and failure criteria were developed to determine the flow stress during aluminum alloy (7075-T6) cutting process. In a stable plastic stage, the Johnson–Cook model considering the adiabatic temperature rise (ATR) was proposed to calculate the plastic flow stress, and the relative errors of the calculated and FE simulated stresses were less than 4%. In the ductile failure stage, an improved failure initiation criterion in terms of temperature, pressure and strain rate was proposed to determine the failure initiation strain in cutting. In addition, an energy-density based ductile failure criterion was used to predict the flow stress in the failure stage. By combining the proposed theoretical model results and the FE simulation results, the entire flow stress during cutting was obtained. The influence of the failure initiation strain of the chip layer on cutting performance was also discussed. In addition, a set of aluminum alloy (A2024-T351) orthogonal cutting simulations were performed to validate the effect of the failure initiation strain on the cutting process. The predicted variation trends of the failure initiation strain for the two types of aluminum alloys were similar, and the predicted forces and tool–chip contact lengths were compared with the measured values in Atlati et al. [9]. Finally, the prediction of the failure initiation strain and its influence on tool–chip contact behavior were validated indirectly.