The spring-back of compacts was quantitatively related with granule properties by a new mechanical analysis using the powder simulation to restrain the spring-back that occurs in compression of granules. First, it was confirmed experimentally that the mechanical properties of single granules varied with slurry conditions and affected the properties of compression and the spring-back of compacts. The compression and spring-back behavior of granules was simulated by the finite element method (FEM) considering the mechanical properties of single granules. The validity of proposed method was confirmed by the fairly good agreement of the simulated stress-strain curve and spring-back rate with the experimental results. Based on the results of simulation for granules having arbitrary mechanical properties, it was found that granules that undergo re-arrangement in the early stage of compression, transmit stress homogeneously in the middle stage, and undergo large plastic deformation in the last stage produce homogeneous compacts and restrain the spring-back of green compacts. The procedure proposed here offers useful information to design granules that restrain the spring-back of green compacts.