In order to predict the initiation of necking in metal bellows forming process, a methodology for determination of the forming limit diagram and the forming limit stress diagram is represented in this paper. The methodology is based on the Marciniak and Kuczynski (M–K) model. Comparison between the experimental and theoretical results for hydroforming stress and strain-limit diagrams as predicted by different methods indicates that the present approach is suitable for prediction of necking in tube hydroforming processes. Afterwards, the implementation of the hydroforming strain- and stress-limit diagrams into finite element numerical simulations for the forming of the metal bellows is established. A satisfactory agreement between the finite element method (FEM) and test results is achieved.