Thermal and mechanical characteristics in dissimilar SS400-STS304 steel weldment have been investigated by 3D thermal elastic-plastic analysis. Moreover, the influence of welding residual stresses on the mechanical behaviour of this welded joint, by applying superimposed external load (tension load) was determined. The residual stresses obtained by numerical simulation were compared with the experimentally measured results. The FE results were in good agreement with the measured values. The mechanical test (hardness, tensile test) and metallurgical analysis was carried out to ensure the weld integrity. Hence, possibility of applying SS400-STS304 dissimilar steels in industries has been established.