Mathematical models of basic parameters, force and thermal parameters of cutting were obtained by applying the thermo-elastic-plastic theory and the heat-balance theory, according to the principle of residual stress generation in cutting process. Based on the 2D finite element model of chip molding with separation surface, the direct way was applied in thermo-mechanical coupling, and residual stress of cutting GH4169 were simulated and analyzed by finite element. The results showed that the residual stresses are changed from tensile to compressive with the development of depth away from the workpiece surface. Also its values are changed according to a certain rule as varying the cutting speed. These provide a foundation for the control of cutting quality of workpiece.