The attempt of this paper is to present an effective approach for the optimization of the shot peening process of welded AISI 304 austenitic stainless steel with multi performance characteristics using Grey relational analysis (GRA) based on Taguchi orthogonal array. Twenty-seven experimental runs are performed to determine best process parameters level. An analysis of variance (ANOVA) is carried out to identify significant peening parameters. The response tables are obtained for analyzing the optimal levels of shot peening parameters and major factors that affect the quality function. The multiple performance characteristics including tensile strength, surface hardness and surface roughness are the quality functions considered for the optimization. Further mathematical models are developed using regression analysis for the tensile strength, surface hardness and surface roughness. It will be very helpful to the engineers in deciding the levels of the shot peening parameters for desired performance characteristics.