Gear design, like many other areas in mechanical engineering, is influenced by a number of factors. Direct factors can be accounted for by the application of the physics and mathematics of the problem. In order to include the more indirect factors in the design phase, a series of tables and charts, based on a number of experiments and trial-and-error tests, have been established and are given in the literature. Experience shows that the interpretation of the physical phenomenon at hand and utilization of correct chart and table differs from one designer to another, which in turn will affect the resulting design. Through this paper, an attempt has been made to show that the application of the finite element (FEM) theory to gear design offers a more straight forward design approach. Recent advances in computer technology allows the use of more and better elements, with resulting improvements in solution accuracy.