The shot peening is largely used for a surface treatment of metallic components where small spherical pellets called shots are blasted onto the surface with velocities up to 100 m/s. This treatment leads to improvement of fatigue behavior due to the developed compressive residual stresses, and so it has gained widespread acceptance I the automobile and aerospace industries. The residual stress profile on surface layer depends on the parameters of shot peening, which are, shot velocity, shot diameter, coverage, impact angle, material properties etc. and the method to confirm this profile is the measurement by X-ray diffractometer only. Despite the importance to automobile ad aerospace industries, little attention has been devoted to the accurate modelling of the process. In this paper, the simulation technique is applied to predict the magnitude ad distribution of the residual stress and plastic deformation caused by shot peening with the help of the finite element analysis.