Effects of evolution in anisotropy during plastic deformation under strain path changes on the formability and failure wereinvestigated in the present study. The evolution in anisotropic property of the extra deep drawing steel was considered byimplementing the non-quadratic anisotropic yield function Yld2000-2d as a function of effective plastic strain, and the correspondingforming behaviour in two-step forming processes was analysed. For the strain path effect, pre-strain was appliedunder biaxial mode using Marciniak in-plane stretch forming set-up, followed by the secondary deformation using the outof-plane stretch forming tool. For failure prediction of the proposed two-step forming, different failure limit approaches wereinvestigated. First, a strain based forming limit diagram (FLD), proposed as the Marciniak–Kuczynski model was modifiedto include the evolution in anisotropic yield function. The dynamic shift in FLD was also determined by taking strain pathchange into consideration. In addition, the influence of evolution of yield function on the strain path independent failure limitcriteria was also assessed in terms of stress based forming limit diagram. Finally, the prediction accuracy of the failure limitcriteria was compared among different models in terms of failure location and limiting dome height (LDH). It was observedthat the incorporation of evolution in anisotropic yield surface improved the prediction of formability in terms of the LDHand strain distribution for the investigated material.