The generation and distribution of workpiece surface and sub-surface residual stress were predicted through the dynamic finite element simulation of the grinding ceramic process. The base of the simulation is that the thermo elastic-plastic finite element theory and the coupling of grinding forces and temperature were adopted. The results obtained from X-ray diffraction measurement compared well with the values calculated from theory. The correlation between grinding parameters and the ceramic residual stresses was investigated. The research results show that the normal grinding force is the primary factor responsible for the generation of residual stress in grinding ceramic. The mechanical effect of the grains is to affect the magnitude, the depth of penetration and the gradient of the residual stresses.