Fretting problem arises in the case of relatively small sliding motion between contacting surfaces. Fatigue life of the components that are in contact with each other, especially in rotorcraft may be significantly reduced due to fretting. The purpose of this study is to investigate material inhomogeneity near the contact region on the fretting problem in a cylindrical on flat contact configuration. A finite element (FE) model was constructed by using commercial finite element package ABAQUS (TM) to study partial sliding and stress concentrations. In order to investigate the effect of material inhomogeneity, the fretting contact is analyzed by introducing voids near the contact region. The void size and an array of voids is introduced into the substrate. The results are compared in terms of pressure, shear traction, tangential stress magnitudes and relative slip between the contacting materials.