Laser welding of steel 316L sheets is considered and the effects of laser welding parameters on the laser weld quality and metallurgical changes in the weld section are presented. The laser weld quality is assessed through careful examination of weld geometrical features, and the resulting weld microstructure. Metallurgical changes in the weld sites are examined using optical, and electron scanning microscope (SEM). Two levels of heat inputs are used-1500W and 2000W; and two scanning speeds of 2cm/s and 4cm/s are used to laser weld 316L sheets. It is found that at the high laser power intensities, evaporation takes place in the irradiated region and as the laser power intensity increases further, a cavity is formed at the top surface of the welding cross section. A similar situation is also observed as the laser scanning speed reduces. The low diffusivity of the alloying elements at high temperatures preserves the segregation profile. The scattered partitioning of the cells and dendrite boundaries are observed due to the presence of Cr and Mo.