The present paper describes the results of high speed photography, acoustic emission (AE) detection and plasma light emission (LE) measurement during $CO_2$ laser welding of 304 stainless steel in different processing conditions. Video images with high spatial and temporal resolution allowed to observe the melt dynamics and keyhole evolution. The existence of keyhole was confirmed by the slag motion on the weld pool. The characteristic frequencies of flow instability and keyhole fluctuations at different welding speed were measured and compared with the results of Fourier analyses of temporal AE and LE spectra. The experimental results were compared with the newly developed numerical model of keyhole dynamics. The model is based on the assumption that the propagation of front part of keyhole into material is due to the melt ejection driven by laser induced surface evaporation. The calculations predict that a high speed melt flow is induced at the front part of keyhole when the sample travel speed exceeds several 10 mm/s. The numerical analysis also shows the hump formation on the front keyhole wall surface. Experimentally observed melt behavior and transformation of the AE and LE spectra with variation of welding speed are qualitatively in good agreement with the model predictions.