In this paper, Finite Element Modeling (FEM) using Marc software was carried out to investigate the strain-strengthening effect on residual stress in 06Cr19Ni10 austenitic stainless steel weld joint made by MIG welding. The model prediction of residual stress was validated by X-ray Diffraction (XRD) method. It is found that there is a good agreement between the model predictions and the experimental results. The strain-strengthening can significantly improve the distribution of residual welding stress. Specifically in weld zone and the heat-affected zone (HAZ), residual stress decreases with increasing strain-strengthening level.