Al-Mn 3004, H-19 alloy is used in the production of drawn and wall ironed containers. As main objective the yielding behavior is studied and then the rate of progress of damage of this two-phase material under different loading systems: pure tension, plane strain and biaxial stretching. A detailed study of the deformation characteristics of this alloy is performed analytically, using the “finite element” technique. Various matrix strengths, intermetallic (Mn A16) particle sizes, and intermetallic volume fractions are investigated in order to understand the effect of different treatments on the formability of 3004, H-19 alloy. The first set of calculations is aimed at the study of the effect of the matrix yield strength and the intermetallic particle Young modulus on the progress of plastic deformation and cracking of the alloy. A comparison is given of the behavior of the main material used and the materials obtained by changing the particle size of the intermetallic compound, and the particle volume fraction is studied under sheet metal forming conditions.