Residual stresses developed during wire drawing influence the mechanical behavior and durability of steel wires used for prestressed concrete structures, particularly the shape of the stress-strain curve, stress relaxation losses, fatigue life, and environmental cracking susceptibility. The availability of general purpose finite element analysis tools and powerful diffraction techniques (X-rays and neutrons) has made it possible to predict and measure accurately residual stress fields in cold-drawn steel wires. Work carried out in this field in the past decade, shows the prospects and limitations of residual stress measurement, how the stress relaxation losses and environmentally-assisted cracking are correlated with the profile of residual stresses and how the performance of steel wires can be improved by modifying such a stress profile.