Nuclear grade austenitic stainless steel 321 contains titanium for severe corrosive conditions and is used for process equipment, aircraft exhaust manifolds and boiler shells. Taguchi-based grey relational analysis technique has been considered to optimize the input parameters for welding SS321 material using activated tungsten inert gas welding process. The optimized input parameters were identified from the multiple output responses, i.e. arc length of 3 mm, welding current of 220 Amps and welding speed of 120 mm/min (A 1 B 3 C 1). The analysis of the variance table was performed to calculate the importance of the input parameters in the weldment quality. Also, the influence of the heat input on the depth of penetration and bead width at different arc lengths has been studied. The mechanical integrity is evaluated in terms of tensile strength for base metal (BM) (621 MPa) and weld metal (WM) (624 MPa) specimens by conducting the uniaxial tensile test. The 180° bend test with WM sample revealed the ductility level and was free from fissures and cracks. Charpy impact test results depicted the toughness values of BM (123.17 J) and WM (113.46 J) samples. Microstructural investigations at the SS321 WM highlighted the existence of columnar and equiaxed dendrites in the fusion zone. Moreover, the formation of titanium carbide reduces the chances of weld decay. Ferrite number measurement shows that the amount of delta ferrite is higher in WM (5.9) than in BM (1.2). The existence of dimples and voids in the fractographic analysis of the failed specimens (tensile and impact) confirms the ductile type of failure.