In the present numerical study, the residual stresses generated during the shot peening process were evaluated using the finite element method. The influence of shot velocity on the residual stress distribution due to the indentation of a rigid shot over the target plate of alloy steel was studied. The finite element package ABAQUS 6.20 is used for simulating the shot peening process considering the target plate to be deformable. A parametric study was performed by introducing strain hardening rate as H1 = 800 MPa, keeping the dimension of target plate same with variation in shot velocity 20, 50, 75, 100, 125, and 150 m/s to check the behavior of residual stress distribution. As the indentation takes place over the metallic target plate, elastic-plastic deformation was observed. The indentation of the shot with a different velocity range causes the difference in the depth and size of the dent and induces the compressive residual stress. For perfectly plastic and the strain hardened material, the residual stress contour was simulated. The simulated results for strain hardened material show the significant change in the compressive residual stress in the sub-surface region of the target plate. It is evident from the results that the shot velocity has a significant effect on the residual stress distribution. The maximum compressive residual stress is achieved when the shot is indented at a velocity of 125 m/s.