Dissimilar metal welds between Ferritic steel and Austenitic steel (F/A)are commonly used in power plants, food industry, pharmaceutical industry and many other applications. There are many issues/problems associated with the joining of dissimilar materials, depending on the materials being joined and the process selected. During the laser welding process, residual stresses are introduced by a rise in temperature during the melting or heating process followed by a very quick cooling of the weld and the surrounding material. In this study, CO2 continuous laser welding has been successfully applied for joining 316 stainless steel with AISI 1009 low carbon steel F/A. Design of Experiment techniques (DOE) has been used for some of the selected welding parameters (laser power, welding speed, and focus position) to model the dissimilar F/A joints in terms of its residual stresses. The Hole-Drilling Method technique was use for measuring the residual stress of dissimilar welded components. Taguchi approach for selected welding parameters was applied and the output response was the residual stresses. The results were analysed using analysis of variance (ANOVA) and signal-tonoise (S/N) ratios for the effective parameters combination.