Surface quality and dimensional tolerances of the selective laser melting (SLM) process are not good enough for many industrial applications and grinding as a common finishing process introduces many surface modifications. Investigation on the effect of grinding induced surface residual stress (RS) on early stages of stress corrosion cracking (SCC) of SLM manufactured 316L austenitic stainless steel was conducted. Potentiodynamic and galvanostatic tests in a 3.5% NaCl aqueous solution, XRD, SEM and energy-dispersive X-ray spectroscopy (EDX) analysis were performed. For annealed and specimens with a low RS magnitude, the dominant observation was pit initiation from existing pores and growth in the build direction. For specimens with medium RS level, SCC initiation from pore sites and propagation along melt pool boundaries and for specimens with the highest detected RS, crack initiation from melt pool boundaries, grains, machining marks, and pore sites were observed. Cracks propagated in different directions, i.e., along melt pool boundaries, near-surface transgranular, and transgranular through columnar microstructure. Galvanostatic tests showed three distinctive regions that corresponded to crack and pit initiation and growth. The synergistic effect of high dislocation density along melt pool boundaries, stress concentration in pore sites, molybdenum segregation, and surface RS was the cause of SCC susceptibility of specimens with high RS magnitude.