The finite element formulation and simulation of drying process for ceramic electric insulators are investigated. The heat and moisture movements in green ceramics caused by the interaction of temperature gradient, moisture gradient, conduction, convection and evaporation are considered. The variations of temperature and moisture not only change the volume but also induce the hygro-thermal stress. The finite element formulation for solving the temperature and moisture distributions as well as the associated hygro-thermal stresses is derived. Using the computer code developed, the drying process of a ceramic electric insulator is simulated. Temperature distribution, moisture distribution, hygrothermal stress and deformed shape during the drying process are predicted.