A review was performed on fatigue life prediction and strength evaluation of shot peened parts. Fatigue strength of machine parts can be improved by shot peening due to compressive residual stresses on such parts. Compressive residual stress cannot be uniquely define by peening intensity. Several measuring methods of residual stress and the principle of hole drilling method are presented. Exploratory measurement of residual stress was performed on the shot peened SM35C plate with the hole drilling method. Fatigue life and failure location of shot peened parts under bending load can be predicted by a damage parameter which is incorporated with material properties, residual stress, and applied stress conditions. Some method are presented to predict the fatigue strength of shot peened parts at any given life. Shot peening gives its full benefit to the notched machine parts of high strength steels.