Laser cladding is one of the advanced thermal techniques used to repair or modify the surface properties of high-value components such as tools, military and aerospace parts. Unfortunately, tensile residual stresses are generated in the thermally treated area of this process. This work focuses on to investigate the key factors for the formation of tensile residual stress and how to minimize it in the clad when using dissimilar substrate and clad materials. To predict the tensile residual stress, a onedimensional analytical model has been adopted. Four cladding materials (Al 2 O 3 , TiC, TiO 2 , ZrO 2 ) on the H13 tool steel substrate and a range of preheating temperatures of the substrate, from 300 to 1200 K, have been investigated. Thermal strain and Young's modulus are found to be the key factors of formation of tensile residual stresses. Additionally, it is found that using a preheating temperature of the substrate immediately before laser cladding showed the reduction of residual stress.