In order to investigate the influence of fine blanking shear surface quality on edge formability, the fine blanking shear surface quality and hole expansion performance of three materials,namely 16MnCr5 steel, C20E steel and C35R steel, under different blanking clearances were investigated. The results show that as the fine blanking clearance increases, the proportion of bright band on the fine blanking shear surface of the three materials gradually decreases, and the corresponding limit hole expansion rate of the hole expansion specimens also gradually decreases. Compared with the hole expansion specimens processed by fine blanking, ordinary blanking and milling processes, it is found that the proportion of bright band on the shear surface of ordinary blanking is much lower than that of fine blanking, but its limit hole expansion ratio is close to that of the hole expansion specimens by fine blanking with a blanking clearance of 0.1 mm. When the proportion of bright band is 100%, the limit hole expansion rate obtained by milling process is 2.3-8.8 times that of the fine blanking process. This indicates that there is no linear relationship between the proportion of bright band on the shear surface and the hole expansion performance of the material, and the material damage caused by material separation during the blanking process is the key factor affecting the edge formability of the material. The changes in the limit hole expansion ratio of the hole expansion specimens by fine blanking after the burr direction is changed and the counter force is increased are experimentally tested. The results show that compared with the reduction in damage value caused by the increase in hydrostatic stress, the change in burr direction has a more significant effect on the improvement of the limit hole expansion rate. The research indicates that reducing the blanking clearance or increasing the hydrostatic stress in the shear zone can effectively enhance the proportion of bright band on the shear surface, but the increase in the proportion of bright band has limited improvement to the edge formability of the material, and reducing the cumulative edge damage during the stamping process is an effective measure to mitigate the risk of edge cracking.