Dilution is a vital element in surfacing and depends on the difference in chemical composition between the weld and the parent metal, the welding process and the technique used. Metal surfacing is becoming the natural choice for reducing the consumption of expensive raw materials, processing cost and proper resource utilization. Mechanical as well as the metallurgical properties are greatly influenced by the degree of dilution. The advanced submerged arc welding (ASAW) process controls the response parameters independently and breaks the fixed relationship between the wire feed rate (W) and the welding current (I). A study was conducted to investigate the effect of process variables on the dilution during the process. The preheating of the electrode wire used in Submerged Arc Welding process (SAW) for surfacing application was done with the modification in the existing setup. Stainless steel 308L electrode wire was used on mild steel substrate to study the effect of preheating on the dilution. The results show that ASAW process controls and significantly reduces the percent dilution as compared with the conventional SAW process. ASAW process reduces the heat input, use of consumables and increased productivity, is the added advantages over the conventional process.