Circumferential weld specifically in thin-walled structures is a common joint type in the fabrication of structural members in aerospace, aeronautical and pressure vessel industries. This type of weld joint suffers various types of weld-induced residual stress fields (hoop and axial) and deformation patterns (axial shrinkage, radial shrinkage). These imperfections have negative effects on fabrication accuracies and result in low strength welded structures that can lead to premature failures. To precisely capture the distortions and residual stresses, computational methodology based on three-dimensional finite element model for the simulation of gas tungsten arc welding in thin-walled cylinders is presented. Butt-weld geometry with single "V" for a 300 mm outer diameter cylinder of 3 mm thick is used. The complex phenomenon of arc welding is numerically solved by sequentially coupled transient, non-linear thermo-mechanical analysis. The accuracy of both the thermal and structural models is validated through experiments for temperature distribution, residual stresses and distortion. The simulated result shows close correlation with the experimental measurements.