The aim of present study is to investigate the effect of welding parameters and heat treatment conditions on the formability of the $CO_2$ laser welded silicon steel sheet. It was found that there is optimum range of the heat input ($0.6{sim}0.7kJ/cm$) and gap distance ($0.125{sim}0.150mm$) for the high tensile strength and the avoidance of the fracture in weld metal. Also, it was essential fur the improvement of formability to perform pre- and post-welding heat treatment which cause the uniform mixture of base metal and welding consumable.