In the previous reports, the simple analytical model of cutting mechanism in gear shaving was proposed, and a computer simulation program for gear shaving was developed on the basis of this model. Using this simulation program, the calculated tooth forms of the shaved gears showed a good qualitative agreement with the measured ones, but they were rugged tooth forms superimposed on the measured ones. In the present report, we analyze a cutting mechanism in gear shaving to propose a more precise model. As a result, it is found that there are three states of contact between the land of the cutter and tooth flank of the work-gear. Penetration tests are carried out to obtain the empirical equations which represent the relations between the depth of the penetration and the resistance to the penetration of a cutter land edge to a work-gear tooth flank. In these tests, tool rollers with and without serrations are applied to a steel block. Using the empirical equations obtained here, the calculated tooth forms of shaved gears show no rugged shape. It can be concluded that a more reliable computer simulation program has been developed.