Second step shot peening was applied on both smooth specimen and U-notch specimen in order to investigate the stress distribution and the improvement in fatigue strength. Various experiments and measurements such as rotary bending fatigue test and the measurement of compressive residual stress were performed. The results showed that the fatigue strength of second step shot peened specimens increased by 34 percent compared to that of unpeened ones. Compressive residual stress also considerably increased, which resulted in the increase of fatigue strength. finite element analysis showed that shot peening is effective in decreasing the bending stress by external force. The effectiveness of shot peening in reducing the compressive residual stress was anticipated by the superposition of the concentrated stress and the compressive residual stress.