The quality of the material used for highly loaded critical gears is of primary importance in the achievement of their full potential. Unfortunately, the role which material defects play is not clearly understood by many gear designers. The mechanism by which failures occur due to material defects is often circuitous and not readily apparent. In general, however, failures associated with material defects show characteristics that point to the source of the underlying problem, the mechanism by which the failure initiated, and the manner in which it progressed to failure of the component.