The stress concentration phenomena due to the structural incontinuty are studied by finite element method. In this study, a circular cylinder is treated. Under the axial load, the membrance action is dominate and the 24 D.O.F. cylindrical membrane finite element is used. The assembly of this element can successfully represent the original structure geometrically. The internal displacement function is such organized that the inter element compatibility condition is fully satisfied. In this study, the stress concentration factors due to the presence of a hole on the cylinder wall are obtained, and the factors versus the location of the hole is computed and plotted. It is found that the hole effect on the stress concentration disappears beyond the neighboring region of the hole size form the edge of the hole. Those results are useful for practical design in determining the region where the re-inforcing is necessary.