The effects of draw-in during hydroforming axisymmetric copper sheet has been investigated. The finite element analysis collaborated with existing experimental results has been employed to study the forming process under different blankholding conditions. It is found that draw-in will reduce the strain level in the deformed blank, and a higher polar height can be achieved when draw-in is present. Strain state in the general area of the blank remains at nearly biaxial tension under different draw-in conditions. However, draw-in has strong effect on the strain state at the die shoulder area. Excessive draw-in will increase the tendency toward wrinkling at the die shoulder area. The results show that in order to eliminate wrinkling, a high initial blankholding load is needed to deform the material drawn from the flange in axisymmetric hydroforming process. In later stages of the process, draw-in becomes beneficial and, hence, a lower blankholding load should be applied.