The application of AISI 304 austenitic stainless steel in various industrial fields has been greatly increased, but poor machinability classifies AISI 304 as a difficult-to-cut material. This study investigated the tool wear, surface topography, and optimization of cutting parameters during the machining of an AISI 304 flange component. The machining features of the AISI 304 flange included both cylindrical and end-face surfaces. Experimental results indicated that an increased cutting speed or feed aggravated tool wear and affected the machined surface roughness and surface defects simultaneously. The generation and distribution of surface defects was random. Tearing surface was the major defect in cylinder turning, while side flow was more severe in face turning. The response surface method (RSM) was applied to explore the influence of cutting parameters (e.g., cutting speed, feed, and depth of cut) on surface roughness, material removal rate (MRR), and specific cutting energy (SCE). The quadratic model of each response variable was proposed by analyzing the experimental data. The optimization of the cutting parameters was performed with a surface roughness less than the required value, the maximum MRR, and the minimum SCE as the objective. It was found that the desirable cutting parameters were v = 120 m/min, f = 0.18 mm/rev, and ap = 0.42 mm for the AISI 304 flange to be machined.