Chromium–nickel austenitic stainless steels are widely used due to their high corrosion resistance, good weldability and deformability. To some extent, their application is limited by their mechanical characteristics. As a result of their austenitic structure, increasing the static and dynamic strength of the components can be achieved by surface cold work. Due to the tendency of these steels to undergo intercrystalline corrosion, another approach to improving their mechanical characteristics is the use of low-temperature thermo-chemical diffusion processes. This article proposes a new combined process based on sequentially applied diamond burnishing (DB) and low-temperature gas nitriding (LTGN) to optimally improve the fatigue strength of 304 steel. The essence of the proposed approach is to combine the advantages of the two processes (DB and LTGN) to create a zone of residual compressive stresses in the surface and subsurface layers—the enormous surface residual stresses (axial and hoop) introduced by LTGN, with the significant depth of the compressive zone characteristic of static surface cold working processes. DB (both smoothing and single-pass hardening), in combination with LTGN, achieves a fatigue limit of 600 MPa, an improvement of 36.4% compared to untreated specimens. Individually, smoothing DB, single-pass DB and LTGN achieve 540 MPa, 580 MPa and 580 MPa, respectively. It was found that as the degree of plastic deformation of the surface layer introduced by DB increases, the content of the S-phase in the nitrogen-rich layer formed by LTGN decreases, with a resultant increased content of the ε-phase and a new (also hard) phase: stabilized nitrogen-bearing martensite.