The aim of the present study is to investigate the effect of punch speed on forming limit diagram (FLD) and the formability of austenitic stainless steel type 304L. Effect of strain rate on the height of dome is studied using the hemispherical punch test. Results of this study show that strain rate has significant effect on FLD in this material and high formability obtains at low strain rate. The safe area of FLD between major and minor strains is extended under low strain rate. It is seen that at low punch speed, failure and fracture occur at the pole region (top of the dome), whereas at higher forming rates, failure occurs close to the flange region. Modeling studies are also carried out using Ls-Dyna to know the region of high stress concentration and to predict the location of fracture. There is good agreement between simulation and experimental results.