In this study, failure pressure prediction was conducted in a pipeline with localized corrosion in base metal (BM), heat-affected zone (HAZ), and welding bead (WB) by finite element (FE) analysis. In the gas pipeline industry, there are methods (B31G, RESTRENGH, Shell, DNV, PCORR, and Fitnet FFS) and authors' approaches (Choi and Cronin) to determine the failure pressure. However, one disadvantage of these methods is that their equations do not consider damage corrosion at the HAZ or WB. They consider corrosion only in the BM. The corrosion shape is rectangular with a radius at the edges. In this study, the corrosion defect depth (d) was varied. The corrosion defect length (L) and the corrosion defect width (W) were equal. A type of rectangular corrosion defect with a radius at the edges in the longitudinal and circumferential directions was proposed. True stress–strain curves for BM, HAZ, and WB of an API 5 L X52 were introduced in the FE program. The results show that the pressure decreases as d, L, and W increase. This is because the damage corrosion is more severe as it grows, which causes the failure pressure to decrease.