Laser heat treatment is an effective technique used to improve the tribological properties and also to increase the service life of automobile components such as camshafts, crankshatfs, lorry brake drums and gears. High power $CO_2$ lasers and Nd:YAG lasers are employed for localized hardening of materials and hence are of potential application in the automobile industries. The heat is conducted rapidly into the bulk of the specimen causing self-quenching action to occur and the formation of matrensitic structure. In this investigation, the microstructrual features occurring in Nd:YAG laser hardening SM45C and $STD_11$ steel are discussed with the use of optical microscopic and scanning electron microscopic analysis. Moreover, This paper describes the optimisation of the processing parameters for maximum hardened depth of SM45C and $STD_11$ steel specimens of 10mm thickness by using CW:YAG laser.