Laser stitch welding is one of the most reliable and efficient permanent metal joining processes in the automotive industry, particularly in the manufacturing of a car body-in-white (BIW). It is widely known that this welding process induces the generation of residual stresses that can influence the dynamic behaviour of welded structures. In order to accurately predict the dynamic behaviour of these welded structures, it is important to experimentally understand the influence of residual stress. Therefore, this study aims to addresses the finite element modelling method of thin steel welded structures with and without the influences of residual stress in order to identify its effect towards dynamic behaviour. The finite element models of thin steel welded structures are developed by employing the area contact model (ACM2) format element connector. The accuracy of the finite element models is then compared in terms of natural frequencies and mode shapes with the experimental counterparts. In the experimental part, the dynamic behaviour of the structure is obtained using an impact hammer with free-free boundary conditions and LMS SCADAS is used to process the data. Sensitivity analysis then is used to identify the most influential regions of the residual stress based on the measured data. Results show that, the MAC values of the finite element model with inclusions of residual stress were substantially increased to 0.85 compared to the finite element model without inclusions of residual stress which is 0.55. It can be noted that, the dynamic behaviour of the structure can be accurately predicted by considering the residual stress on the structure in finite element modelling.