Background: Compaction in the powder metallurgy process typically involves using a die and punch, applying high pressure to mixed powder to achieve product quality, such as geometry, density, and porosity. This step is critical in the powder metallurgy process. Objective: This study aims to systematically design and manufacture a die and punch for compacting an Alumina-based matrix composite. Specimens were selected according to ASTM C 1421-10 guidelines, and the die and punch were constructed using AISI D3 tool steel alloy. Methods: To ensure satisfactory compaction, the design underwent virtual testing using Finite Element Analysis (FEA) with compaction loads ranging from 2.5 to 20 tons in 2.5-ton increments. The simulation results were validated through experimental testing. Results: The die parts were analyzed for three-dimensional stress and deformation during compaction. Maximum stress distribution was observed in the Alumina powder, followed by the punch, plate, and die. Additionally, compaction behavior and density tests confirmed that a compaction pressure of 548 MPa or more results in high relative density in the Alumina-based matrix composite powder during the compaction process. Conclusion: Both simulation and experimental results indicate that a compaction pressure of 548 MPa or more is necessary to achieve satisfactory compaction of the Alumina-based matrix composite. These findings offer practical implications for optimizing the powder metallurgy compaction process and reducing costs.