Intermediate annealing to stainless steel can eliminate the residual stress, and improve plasticity and ductility effectively, but oxidation after different annealing processes has considerable difference. In this research, three annealing processes, low temperature annealing with ordinary heat treatment furnace, high temperature annealing with ordinary heat treatment furnace and high temperature bright annealing, were used to gain insight into the mechanics of intermediate annealing. Specimens of 304 austenitic stainless steel sheets were adopted in the intermediate annealing experiments which pre-deformation was 15%. The specimens’ surface microstructure were observed by scanning electron microscope (SEM), and the specimen oxidation, which happened in the annealing process, were also analyzed. The results show that bright annealing must be adopted in high temperature annealing.