The present study focuses on understanding the micro structural and residual stress state modification with the application of local mechanical tensioning and laser processing. Previous experiment (performed at SALSA, ILL) showed clearly that post weld rolling is very effective in modifying the stress state of a welded steel component and depending on the applied load it is even possible to change the original tensile stress in and around the weld metal to compressive residual stress state. Past experiment showed laser processing although effective in initiating recrystallization causes reversal of the tensile residual stress state. Therefore, in the present proposal, it would be explored if the applied laser energy and the heat input (by the laser process) can be controlled to a degree which would initiate formation of strain free grains but would not reinstate the as-welded residual stress state.