3D finite element-based software (3D DEFORM) was used to simulate the thermal extrusion process of nanocrystalline magnetic ring. The effective stresses and effective strains for a ring magnet at different stages of the extrusion process were determined by simulation. The effective strains at different stages are displayed. The effective stresses on the cross section are determined by simulation. The test results of magnetic properties were of good validation of the three-dimensional finite element analysis for nanocrystalline backward extruded ring. 3D finite element-based plastic deformation simulation is proved to be an effective way to analyze the hot extrusion process of nanocrystalline magnetic ring, and to provide guiding for the mold design of thermal extrusion.