The AISI D2 steel is a high-chromium and high-carbon tool steel which has good mechanical properties such as high compressive strength and good through-hardening. Despite these advantages, fracture toughness of this steel is moderate. In this study, fracture toughness of AISI D2 steel was determined using Finite Element and Acoustic Emission methods. Selected steel (AISI D2 cold-work tool steel) was heat treated and tempered at different conditions. Then Compact testing specimens were prepared according to ASTM E399 standard and fracture toughness of the specimens was specified according to the standard method. The specimens were modeled in the commercial FE software (ABAQUS) and fracture toughness of the specimens was determined using FEM. Determination of fracture toughness using AE technique was carried out according to three methods: Acoustic Emission Energy Rate (AEER), Acoustic Emission Count Rate (AECR) and integral of sentry function. The results obtained from ASTM E399, Finite Element and Acoustic Emission methods were compared with each other. It was found that fracture toughness values which were obtained using AECR and integral of sentry function techniques are lower bound and the results obtained from FEM are upper bound values of the fracture toughness. Furthermore, fracture toughness values obtained using AEER were the most consistent with the results obtained from ASTM E399 standard method. Finally, it could be concluded that Acoustic Emission method can be used as a useful method for determination of fracture toughness of engineering materials.