Magnetic inductive probe was designed and assembled for sensing the residual stress developed in the ferromagnetic thin sheet. The residual stress measurement system with this probe could resolve the residual stresses developed in the sheet in terms of principal stress orientation, and magnitude of the principal stress. It was consumed that the obtained probe output voltage from the qualified ferromagnetic Fe-42Ni lead frame sheet and quality-rejected sheet is effectively determined using the developed device. The lead frame sheet which has accumulated a high level of residual stress always showed a distinctive stress distribution and magnitude compared with those of qualified lead frame sheet. Those differences were well resolved as functions of input current or used frequency.