Barkhausen noise (BN) is created by the abrupt changes in the magnetization of materials under applied AC magnetizing field. These changes are known to be sensitive to residual and applied stresses. In this study, BN theory was reviewed and it was examined how BN intensity was affected by simultaneous stress, hardness and microstructural changes. Also, magnetoelastic effect was used to evaluate residual stresses through carrying out the cantilever beam test. An increase in BN intensity was observed when applied and residual stress changes from compression into tension. Microstructural softening by tempering also increased the amount of BN. Therefore, the quantitative evaluation of residual stress and microstructural changes will be possible, provided BN method is more studied about various materials through comparing with different stress measuring techniques.