Die wear during trimming of advanced high strength steel (AHSS) sheets deteriorates the edge quality of trimmed sheets. In this work, the mechanisms of AISI D2 steel trim die wear and their effects on plastic deformation and fracture behaviour of the sheared edge of DP980 steel sheet were examined. A mechanical press equipped with D2 inserts was used to trim DP980 sheets with a clearance of 0.14 mm (10%). Abrasion and microchipping were identified as the wear mechanisms operating at the upper die, with microchipping becoming more dominant after 60,000 trimming cycles. The burr height and the length of the burnish zone of sheared DP980 sheets increased linearly with the chipped die edge percentage. The shear strains in the shear effected zone (SAZ) were estimated using martensite displacements as metallographic markers in the ferrite matrix as a function of the depth beneath the sheared edge. The depth of SAZ, and the plastic strains at a given depth within the SAZ increased with the number of trimming cycles. Correlation of the local stress and strain values generated in the SAZ showed that a saturation flow stress was reached near the sheared edge. The damage in SAZ occurred in the form of crack formation at the martensite/ferrite interfaces and fracture of martensite. Die wear reduced the tensile ductility of the DP980 sheets, and the fracture mode in tension changed from ductile with localized neck to more brittle sheared edge fracture initiating from surface cracks after 60,000 cycles.