Advanced high strength steels (AHSS) are widely used in the automotive industry for various applications especially for structural and safety parts. One of the concerns for AHSS in stamping operations is edge fracture originating from sheared blanked edges. This type of failure cannot be predicted by computer simulations using the conventional forming limit as the failure criterion. The reason for this is that edge damage produced by the blanking operation is not incorporated into the computer models to properly simulate the material edge formability. This study presents a method to evaluate edge damage in terms of the residual stress at the sheared edge produced by the blanking operation. The method uses the level and distribution of edge strain hardening (ESH) through the material thickness as an index to characterize the edge damage caused by the shearing operation.