Third-generation advanced automotive medium-Mn steel, which can replace 22MnB5 steel, was newly developed to improve the lightweight and crashworthiness of automobile. Studies on the formability and simulation method of medium-Mn steel have just been initiated. In this study, finite element simulation models of square-cup deep drawing were established based on various material property experiments and validated by experiments. The effects of blank holder force (BHF), fillet radii of tools (die and punch) on the maximum drawing depth (MDD), thickness distribution of the formed products, and the microstructure before and after forming were investigated and compared with those on 22MnB5 steel. Results show that the MDD of the two steels decreased with increased BHF but increased with the fillet radius of punch; however, the fillet radius of die showed no significant effect on the MDD for both steels. Compared with hot-formed 22MnB5 steel, the martensitic transformation of the hot-formed medium-Mn steel is rarely influenced by the process parameters; thus, it holds the complete, fine-grained, and uniform martensitic microstructure. Moreover, the medium-Mn has better formability, lower initial blank temperature, and smaller impact of BHF and fillet radius of tools on the hot-formed product. Thus, a theoretical basis for the replacement of 22MnB5 steel by medium-Mn steel in hot forming process is provided.