The moto of this research paper is to design and simulation of a fully automated and high speed assembly system design for self-centering release bearing, which can reduce human efforts, time consumption and eventually cost of a final product. This system increases efficiency and production rate on an assembly line. This system has been designed by using PTC Creo 2.0 a modelling software. For the gripping purpose a self-centering gripper is used, which is designed in such a way that it holds the bearing hub with center matching technology and assemble it over self-centering release bearing within the exact tolerance zone. To control all motions of the grippers and the center matching tools the rod less pneumatic cylinders are used. At the end, the computer aided structural analysis and validation of the bearing hub and the gripper have been performed using ANSYS Workbench 16.0 to study the stresses developed and deformation pattern during the process of assembly