AbstractIn this paper the second order characteristic (discontinuous bifurcation) condition is derived for the granular flow (fully plastic) equations. This second order bifurcation equation is shown to be formally identical to the first order localization requirement during steady elastoplastic deformation provided the elastic compliance tensor is substituted for the product of the plastic multiplier with the flow Hessian. For isotropic yield and flow functions the invariant form of the characteristic condition is given in detail, as well as an alternative expression in adapted co‐ordinates. The characteristic condition can be regarded as defining a hardening function which is maximized to identify the critical angles. When the method is applied to 3D Coulomb flow, Mohr's 3D fracture plane conditions are obtained uniquely. Copyright © 2003 John Wiley & Sons, Ltd.