Pulsed laser welding of AISI 304 stain1ess steel plate was simulated using commercial finite element software to determine the optimal welding conditions. Due to geometric symmetry, only one plate was modeled to reduce the simulation computation time. User subroutines were created to account for a moving three-dimensional heat source and to apply boundary conditions. The material properties such as conductivity, specific heat, and mass density were determined as functions of temperature. The latent heat was considered within the given temperature range. The three-dimensional heat source model for pulsed laser beam butt welding was designed by comparing the finite element analysis results and experimental data. This successful simulation of pulsed Nd:YAG laser welding for AISI 304 stainless steel will prove useful for determining optimal welding conditions.