Laser surface technology allows precise treatment of clearly defined surface areas. The absorbed energy results in rapid heating of a thin surface layer that is subsequently quickly cooled down by thermal conduction once the spot beam moves on. Laser pre-heating is commonly used as an in-machine process to improve the machinability of hard or difficult to machine alloys due to the resulting thermal softening effects. The illuminated area is, however, generally larger than the one being machined with previously cut areas being re-heated. The subsequent rapid quenching of the highly strained machined areas is known to promote undesired metallurgical changes. This study investigates the interaction effects of laser radiation with a commonly used austenitic steel, AISI 316L. Surface residual stress, hardness and microstructure of freshly milled flat specimens were measured and recorded prior to exposing them to a diode laser beam, to assess the effects of laser heating on a variety of responses. Continuous wave irradiation of the surfaces was performed and effects of laser power, power density distribution and irradiation time were investigated using an experimental approach. Laser exposure of uncoated samples was conducted under protective gas shielding (Argon) using heating parameters combinations that would limit or avoid laser surface melting. This was performed with the aim of comparing the effects of laser exposure on the previously acquired surface responses. Surface hardness and residual stress were measured and compared with non-irradiated areas, optical and SEM cross-section metallographic slides were also employed to investigate the presence of microstructural changes caused by the rapid self-quenching associated with laser heating.