This study was made of the effect of cold working on the stress corrosion cracking(SCC) of austenitlc 304 stainless steel in boiling 42% $MgCl_2$ solution. For this experiment, specimens cold-worked of 0%, 10%, 20%, 30%, 40% were fabricated respectively, and then experiments of mechanical properties and stress corrosion cracking(SCC) of these specimens were carried out. The results of these experiments indicate that the maximum resistance to SCC showed at 20% of cold working degree and that the SCC susceptibility depended on the volume fraction of deformation-induced martensite by cold working and the work hardening of matrix. On the other hand, the fracture mode was changed. This phenomenon was considered that deformation-induced martensite was grown from transgranular fracture mode to intergranular fracture mode and caused by increased of dislocation density along the slip planes.