The purpose of this study is to investigate the effects of laser spot size on the mechanical properties of AISI 420 stainless steel, fabricated by selective laser melting (SLM), process. Tensile specimens were built directly via the SLM process, using various laser spot diameters, namely 0.1, 0.2, 0.3, and 0.4 mm. The corresponding volumetric energy density (EV) is 80, 40, 26.7, and 20 J/mm3, respectively. Experimental results indicates that laser spot size is an important process parameter and has significant effects on the surface roughness, hardness, density, tensile strength, and microstructure of the SLM AISI 420 builds. A large laser spot with low volumetric energy density results in balling, un-overlapped defects, a large re-heated zone, and a large sub-grain size. As a result, SLM specimens fabricated by the largest laser spot diameter of 0.4 mm exhibit the roughest surface, lowest densification, and lowest ultimate tensile strength. To ensure complete melting of the powder and melt pool stability, EV of 80 J/mm3 proves to be a suitable laser energy density value for the given SLM processing and material system.