The uniform nickel coatings on substrate of low carbon steel were prepared by an electrodeposition method. The residual stress in the electrodeposited nickel coating was measured by X-ray diffraction (XRD). It was tensile when the coating was not treated. Laser beam thermal shock was used to modify the mechanical properties of the nickel coating. Laser beam thermal shock could redistribute the residual stress in the nickel coating. The residual stress could be converted from tensile to compressive. A tensile method to determine the stress-strain curve of the coating is proposed where the stress-strain relationship of the substrate without coating was determined for the specimen loaded by an applied tensile force.