Laser hole cutting into Ti-6Al-4V alloy is carried out. Temperature and stress fields during the cutting process are predicted using the finite element code. Temporal variation of surface temperature in the region close to the kerf edge is monitored by a thermocouple and compared with the predictions. The residual stress formed in the cutting region is obtained from the XRD technique and compared with the predictions. The morphological changes around the kerf surfaces are examined incorporating optical and scanning electron microscopes. It is found that von Mises stress attains slightly higher values at the top circumference as compared to that corresponding to the bottom circumference of the hole cut. The prediction of temperature variation agrees well with the thermocouple data. The residual stress predicted also agrees with the results of the XRD technique.