Computer Aided Engineering (CAE) plays an important role in the product development. Now a days major decisions like concept selection and design sign off are taken based on CAE. All the Original Equipment Manufacturers (OEMs) are putting consistent efforts to improve accuracy of the CAE results. In recent years confidence on CAE prediction has been increased mainly because of good correlation of CAE predictions with the test results. Defining proper correlation criteria and using a systematic approach helps significantly in building the overall confidence level for predictions given by CAE simulations. Representation of manufacturing effects on material properties and material failure in the simulation is still a big challenge for achieving a good CAE correlation.This paper describes side impact test vs CAE correlation. The important parameters affecting the CAE correlation were discussed.