This paper describes an innovative approach for the design automation of progressive dies. The die design is modelled as a process to design its die functions. A template concept used to realize the die structure for a die function is proposed in the paper. A user begins by defining the geometric and stamping features of a sheet metal part. The geometric and feature information is processed and stored in a knowledge-based system. After automatic unfolding and nesting operations, the stamping process is interactively staged. Thereafter, a model-based approach takes over and generates the knowledge-based description of the die. Using special semantics to describe the die topology and assembly relations, a three-dimensional solid model of the entire die assembly is generated from the die description knowledge base. This system is able to produce three-dimensional strip layout, three-dimensional die components and assembly, and annotated two-dimensional production drawings. It significantly improves stamping die design productivity and accuracy, which is achieved through the capturing and processing of die design knowledge.