The present work aims to investigate the effects of the temperature gradient developed within the tool profiles on the formability of IS 513 CR3-grade steel sheets using the cup drawing test. The deformation characteristics of steel sheets were analyzed by comparing the thicknesses in various regions of the formed cup and also the limiting drawing ratios (LDR). Finite element simulations were carried out to predict the behavior of the steel sheets in isothermal and non-isothermal forming using Abaqus/Standard 6.12-1. An analytical model created by Kim was used to validate the experimental and finite element analysis (FEA) results on identical process parameters. Both the FEA and analytical modeling results showed that formability improvement is possible in warm forming; the findings are in good agreement with the experimental results in determining the locations and values of excessive thinning. The results also indicated that formability improvement cannot be achieved by keeping the tooling temperature at the same level. The LDR increased by around 9.5% in isothermal forming and by 19% in non-isothermal forming (with the punch maintained at a lower temperature compared with the die and blank holder). In addition, the fractured surfaces of unsuccessfully formed samples were analyzed using scanning electron microscopy. Metallographic investigations confirmed that the fracture mechanism during the forming of IS 513 CR3-grade steel sheets depends on the brittleness, strain hardening value, forming temperature, and magnitude of stresses developed.