The effect of a ceramic ball inclusion on densification behavior of a metal powder compact was investigated under cold isostatic pressing, pressureless sintering and hot isostatic pressing. To simulate those processes, proper constitutive models were implemented into a finite element program (ABAQUS). Measured density distributions of metal powder compacts were also compared with finite element results and showed the same trend with simulated results. Residual stress distributions were calculated by finite element analysis to study the effect of ceramic ball inclusions with different thermal expansion coefficients. The higher residual stress was observed in a metal powder compact when the difference between thermal expansion coefficients for a ceramic ball and metal powder became larger. Samples produced by Wing showed more uniform density distributions and lower residual stresses compared to those by sintering after cold isostatic pressing. For various sizes of ceramic ball inclusions, densification and deformation of powder compacts were also studied during hot isostatic pressing.