This study carries out an FEM simulation on rotating compression forming of double-layers clad ring by SUPERFORM commercial analysis software. Frictions between the upper and lower dies and the double-layers clad ring are assumed as constant shear frictions, but can be different. The shape of the inner and outer surfaces of the double-layers clad ring, the equivalent stress, the equivalent strain, the velocity field, the compression distribution, the compression force, and rotating moment can be determined from the FEM simulation. Effects of various compression conditions such as the clad cylinder height ratio, the frictional factor, the rotating angular velocity etc on the compression characteristics are explored in this study.