Laser surface hardening is an advanced method of surface treatment of structural steels with a great potential for wide industrial applications. According to the recent literature results and knowledge about laser hardening, fatigue resistance can be either reduced or increased, even considerably, depending on numerous parameters of basic material, the technology parameters etc. This contribution contains results of a partial study of effect of laser hardening of relatively small specimens on fatigue resistance of 42CrMo4 steel. Two different parameters of laser hardening were used, one of them resulted in considerable longitudinal residual stresses surface speed of laser beam 4 mm/s. Results of fatigue tests of basic reference material had a surprisingly high, atypical scatter, particularly in the region near fatigue limit. Fractographical analyses indicated that this scatter was connected with presence of single inclusions, even quite large, which in some cases caused fatigue crack initiation. Compressive residual stresses after the laser treatment improved fatigue strength and reduced the scatter, likely due to short crack retardation in the compressive residuals tress field. Further analyses and discussion are provided using Murakami method of fatigue life evaluation of materials containing defects.