Ultrasonic nondestructive techniques can be used to characterize grain size and to evaluate mechanical properties of metals more practically than conventional destructive optical metallography and tensile tests. Typical ultrasonic parameters that can be correlated with material properties include ultrasonic velocity, ultrasonic attenuation coefficient, and nonlinear ultrasonic parameters. In this work, the abilities of these ultrasonic parameters to characterize the grain size and the mechanical properties of 304L stainless steel were evaluated and compared. Heat-treated specimens with different grain sizes were prepared and tested, where grain size ranged from approximately 40 to 300 μm. The measurements of ultrasonic velocity and ultrasonic attenuation coefficient were based on a pulse-echo mode, and the nonlinear ultrasonic parameter was measured based on a through-transmission mode. Grain size, elastic modulus, yield strength, and hardness were measured using conventional destructive methods, and their results were correlated with the results of ultrasonic measurements. The experimental results showed that all the measured ultrasonic parameters correlated well with the average grain size and the mechanical properties of the specimens. The nonlinear ultrasonic parameter provided better sensitivity than the ultrasonic velocity and the ultrasonic attenuation coefficient, which suggests that the nonlinear ultrasonic measurement would be more effective in characterizing grain size and mechanical properties than linear ultrasonic measurements.