Proceedings of ICSB1. Editor: A. Niku-Lari, X-ray diflractometry has been used to examine the variation of residual stress across shot peened surfaces, the transformation of austenite to rnartensite on peening and the decay of surface residual stress during fatigue testing of peened specimens. It is shown that masking gives rise to tensile surface residual stresses adjacent to the peened area. Peening of austenitic stainless steel produces surface martensite in amounts that depend upon the composition of the steel. Transformation of retamed austenite on peening of carburised steel is found to give a substantial improvement in the surface and sub-surface residual stresses. Shot peened austenitic stainless steel is found to lose its compressi...