Shot peening is a surface treatment and improves the performance of engineering components. More recently, a new type of microshot has been developed to enhance peening effect. In the present study, the influence of microshot peening on the surface layer characteristics of cold tool steel was investigated. In the experiment, the microshot peening apparatus with a heating furnace was produced experimentally. The projective method of the microshot was a compressed air type. The peening microshots of 0.1mm diameter were cemented carbide and the workpiece was commercially cold tool steel SKD11. Surface roughness, compressive residual stress, and hardness in the peened workpiece were measured. The effect of microshot peening on the fatigue strength of cold tool steel was also examined. The use of hard microshot such as cemented carbide was found to cause a significantly enhanced peening effect for cold tool steel.