The predictor-corrector method is applied to finite element analysis of two dimensional elasto-plastic problems. When proportional loading is assumed, approximated finite dimensional form of incremental equilibrium equations can be represented as a system of ordinary differential equations and various integration schemes including the predictor-corrector method can be applied to the problem. In the present study, three typical plane problems including a V-notched tension specimen problem, a perforated tension strip problem and a fixed continuum beam problem are selected and analysed for linear hardening and elastic-perfectly plastic materials. Results obtained from the Newton-Raphson method and the modified Newton-Raphson method are compared with those from the predictor-corrector method. The predictor-corrector method gives results with acceptable numerical errors much more efficiently than the other methods for the plane strain problems with linear hardening. But for plane stress problems and the problems of elastic-perfectly plastic materials, the Newton Raphson method is found to be efficient and it seems that further work is required to develop an efficient algorithm applicable to all cases.