Direct laser melting(DLM) is promising as a joining method for producing parts for automobiles, aerospace, marine and medical applications. An advantageous characteristic of DLM is that it affects the parent metal very little. The mechanical properties of parts made by DLM are strongly affected by the porosity and surface roughness of the laser melted beads. This is a systematic study of the effects of the porosity and surface roughness of laser melted beads using various processing parameters, such as laser power, scan rate and overlapping ratio of the fill spacing. The specimens were fabricated with 316L and 304L austenitic stainless steel powder. Dense parts with low porosity were obtained at low laser scan speed, as it increased the aspect ratio of the parental material and the depth of penetration. The variations of surface roughness were examined at various processing parameters such as overlapping ratio and laser power.