Fastener holes used in the mechanical joints are vulnerable to failure due to development of stress concentration at their edges. Inducing compressive residual stresses by different techniques has been the most common method to reinforce the holes to date. In this work, a new reinforcement technique called internal torsion, which can be classified as a localized severe plastic deformation process, is proposed as an alternative to the cold expansion pre-stressing. A special specimen is designed to represent the behavior of a typical fastener hole during the internal torsion process. The deformation of the specimen in the vicinity of its hole surface is studied by introducing a parametric kinematically admissible velocity field (PKAVF) within the deformation affected zone (DAZ). Calibration of the parameters in relation to the deformation of the material during the process is done by an elastic-plastic finite element solution that was performed in ABAQUS for a specimen made of interstitial free (IF) steel. Numerical analysis of the deformation is carried out to understand the process and to estimate the optimum process parameters. Subsequently, the calibrated model is used in an upper-bound solution of the problem to estimate the torque–twist response of the specimen during internal torsion. Finally, the results of upper-bound solution are compared with those of finite element analysis. There is a good agreement between the upper-bound solution and finite element results, which verifies validity of the calibrated velocity field model and the upper-bound solution based on the model for the internal torsion problem.