In order to improve the stress corrosion resistance of 316 stainless steel, a new technology was proposed and studied. The 316 stainless steel sample was treated by laser shock processing (LSP). The residual stress and microstructures of 316 stainless steel with and without LSP were measured and compared by the methods of X-ray, transmission electron microscopy (TEM) and Electron Back-ScatteredDiffraction (EBSD), and the strengthening mechanism was discussed. It showed that the high residual compressive stress introduced by laser shock processing was about-112 MPa. The TEM and EBSD results showed that severe plastic deformation and nanocrystals layer were formed by LSP, and the orientation of the grains had evident rotation in the process of plastic deformation. These helped to enhance the stress corrosion resistance of 316 stainless steel.