Dry storage canisters of used nuclear fuels are fabricated using SUS 304L stainless steel. Chloride-induced stress corrosion cracking (CISCC) is one of the major failure modes of dry storage canisters. The cracked canisters can be repaired by friction stir welding (FSW), a low-heat input ‘solid-phase’ welding process. It is important to evaluate the ClSCC resistance of the friction stir welded material. Stress corrosion cracking (SCC) studies were carried out on mill-annealed base materials and friction stir welded 304L stainless U-bend specimens in 3.5% NaCl + 5 N H2SO4 solution at room temperature and boiling MgCl2 solution at 155 °C. The engineering stress on the outer fiber of the FSW U-bend specimen was ~60% higher than that of the base metal (BM). In spite of the higher stress level of the FSW, both materials (FSW and BM) showed almost similar SCC failure times in the two different test solutions. The SCC occurred in the thermo-mechanically affected zone (TMAZ) of the FSW specimens in the 3.5% NaCl + 5 N H2SO4 solution at room temperature, while the stirred zone (SZ) was relatively crack-free. The failure occurred at the stirred zone when tested in the boiling MgCl2 solution. Hydrogen reduction was the cathodic reaction in the boiling MgCl2 solution, which promoted hydrogen-assisted cracking of the heavily deformed stirred zone. The emergence of the slip step followed by passive film rupture and dissolution of the slip step could be the SCC events in the 3.5% NaCl + 5 N H2SO4 solution at room temperature. However, the slip step height was not sufficient to cause passivity breakdown in the fine-grained SZ. Therefore, the SCC occurred in the partially recrystallized softer TMAZ. Overall, the friction-stirred 304L showed higher tolerance to ClSCC than the 304L base metal.