Damascus steel swords were forged in the Near East from ingots of crucible steel- a steel made by melting iron and cast-iron together along with sand, glass, or ashes in a crucible. The result would be a high-carbon steel and lower-carbon steel, creating an intricate pattern when the steel was forged, filed, or polished. The process of creating Damascus steel has been lost, and modern forging methods can only approximate the characteristics of historic Damascus steel.

The metal is characterized by the distinctive banding and patterns reminiscent of flowing water. Historically, Damascus steel blades were reputed to be tough, shatter-resistant, and capable of being honed to a sharp edge.

Many modern Damascus steel products are made using pattern welding, where the steel is made by folding several different metals together multiple times, each layer being welded on top of the next. This process gives the steel its unique pattern resembling the ancient blades.