The microstructure, mechanical properties and residual stress of flux-cored arc welded ASTM A516-70N carbon steel using a Mn-based low-temperature transformation (LTT) welding consumable were investigated. Microstructural analysis with X-ray diffraction, an electron backscattered diffractometer and a field-emission scanning electron microscope showed that the LTT weld metal was made up of ferrite, austenite, martensite, and bainite with phase fractions 50.5%, 0.2%, 40.2% and 9.1%, respectively. The increase in hardness and the decrease in absorbed impact energy of the LTT weld metal compared with conventional consumable welds were confirmed to be due to the relatively high fraction of martensite phase in the weld metal. The welding residual stress distributions in three coupons (LTT, conventional and postweld heat-treated conventional weld) were compared by the results using instrumented indentation testing. The LTT weld coupon showed compressive residual stress distributed in the weld metal and heat-affected zone (HAZ), confirming previous studies in which this residual stress was attributed to a martensitic phase transformation at relatively low temperature. PWHT in the conventionally welded coupon considerably reduced the tensile residual stress distributed in the weld metal and HAZ. The LTT consumable, however, showed a significant advantage in welding residual stress, even compared with the heat-treated conventional consumable.