The objective of this study is to design a laboratory specimen for simulating residual stress of circumferential butt welding between pipes. Specimen type and method to generate residual stress were proposed based on the review of prior studies and parametric finite element analysis. To prove the proposed specimen type and loading method, the residual stress was generated using the designed specimen by applying proposed method and was measured. The measured residual stress using X-ray diffraction reasonably agreed with the results of finite element analysis considered in the specimen design. Comparison of residual strains measured at several locations on the specimen and given by finite element simulation also showed good agreement. Therefore, it is indicated that the designed specimen in this study can reasonably simulate the axial residual stress of a circumferential butt welding of pipe.