The fatigue characteristics of bevel gear used for differential gear of automobile was investigated in this paper. From the A-N(Almen intensity-Number of fracture)curve of bevel gear it was shown that there was a specific time that have a maximum fatigue life. Optimal peening condition was 65m/s of project velocity and 8min of project time. Fatigue life was also investigated from the S-N curve between optimal peened specimen and unpeened specimen. Another very significant point is that the crack initiation of bevel gear by shot peening was generated in the subsurface from fractography. This paper shows that shot peening process tremendously improve fatigue characteristics of bevel gear.