In this study, 304 stainless steel which widely used in the industrial field due to its excellent thermostability, corrosion resistance and welding performance, was welded using local dry underwater pulse metal inert-gas (LDU-PMIG) welding technology. The effect of different pulse peak currents on droplet transfer behavior and weld formation was studied. The results show that short circuit transfer, globular transfer, and projected transfer could be observed in the LDU-PMIG process. With the peak current of 240A, the droplet transfer mode was short circuit transfer and globular transfer, the weld formation was irregular with large particle spatters around the weld. With the peak current increased to 260A, the droplet transfer mode changed into the globular transfer, and the weld formation quality was improved. With the peak current of 280A, the droplet transfer mode was projected transfer, the weld formation was satisfied with few spatter, and the coefficient of weld formation was the largest, projected transfer was the most stable mode. With the increase of the peak current from 300A to 320A, the droplet transfer mode did not change, but the instability of the welding arc resulted in poor weld formation with serious spatters and undercuts.