This paper presents a constitutive model describing the mechanical behavior of metal powders during (uniaxial) cold die compaction processes, placing special emphasis on the modeling of cracks formed during the ejection stage. The constitutive relationships are derived within the general framework of rate-independent, isotropic, finite strain elastoplasticity. The yield condition is determined by three surfaces intersecting non-smoothly in stress space, namely, an elliptical cap and the classical Von Mises and Drucker–Prager yield surfaces. The distinct irreversible processes are described in terms of two internal variables: an internal hardening variable, associated with accumulated compressive (plastic) strains, and an internal softening variable, linked with accumulated (plastic) shear strains. Motivated by both numerical and physical reasons, a parabolic plastic potential function is introduced to characterize the plastic flow on the linear Drucker–Prager failure surface. A thermodynamically consistent calibration procedure is employed to relate the softening modulus to fracture energy values obtained experimentally on Distaloy AE powder specimens. The predictive capability of the constitutive model is checked by simulating three representative cases: a diametral compression test, the ejection of an over-densified thin cylindrical part and the compaction of an axially symmetric multilevel part in an advanced CNC press machine. These simulations demonstrate the ability of the model to detect evidence of macroscopic cracks, clarify and provide reasons for the formation of such cracks, and evaluate, at least qualitatively, the influence of variations in the input variables on their propagation through the green compact.