The economic use of cold-formed steel members means that buckling and the possible loss of effectiveness it produces are important features of design. The prediction of the true buckling behaviour of cold-formed steel beams accounting for all governing features such as geometrical imperfections, material nonlinearity, postbuckling etc. has been possible with the development of advanced numerical modelling. The FE models developed in previous research have been used in this paper to investigate the effect of edge stiffeners (lips) and their interaction with compression flanges on the postbuckling of laterally restrained cold-formed Z-section beams. Depending on the lip size-to-flange width ratio and angle of inclination of the edge stiffener, the cross-sectional bending resistance varied and transitions between local, distortional and combined local/distortional buckling were observed. The suitability of the design treatments available in Eurocode 3 (EC3) for local and distortional buckling of cold-formed Z-section beams was assessed. Overall, the EC3 predictions for cross-sectional bending resistances were unconservative. Some shortcomings were identified and some suggestions for improvements were made. This included improvements in plate buckling factors for edge-stiffened compression flanges.