This study has been performed to investigate into some effects of power density and traverse speed of laser beam on the microstructure, hardness and residual stress of AISI 4140 treated by laser surface hardening technique. Optical micrograph has shown that large martensite and a small amount of retained austenite in outermost surface layer and fine lath martensite in inner surface hardened layer are formed under the condition of a given power density and traverse speed. Hardness measurements have revealed that as the power density increases at a given 2.0m/min of the traverse speed, the maximum hardness values of outermost surface hardened layer is increased from Hv=635 to Hv=670. X-ray analysis for residual stress has exhibited that low compressive residual stress values are obtained in center point of the cress section of surface hardened layer with in mid point between the edge and the center point, about 1.5mm from the center point, due simply to a difference in self-quenching rate. It has been shown that the higher the power density at a given traverse speed and the olwer the traverse speed at a given power density, the more the compressive residual stress values are increased due to an increase in the input heat of laser beam.