High stresses formed around the laser cut edges limit the practical applications of the parts produced. In the present study, laser cutting of small diameter hole into Ti-6Al-4V alloy is carried out. Temperature and stress fields developed in the cutting region are simulated, in line with the experimental parameters, via incorporating the finite element code. The temperature predictions are validated with the thermocouple data. The residual stress developed at the vicinity of the cut surface is obtained using the XRD technique. The features of the hole section are examined using the optical and scanning electron microscopes. It is found that temperature decay is gradual, due to the annealing effect, in the region where the cutting ends; in which case, the peak value of von Mises stress reduces in this region. The residual stress predicted agrees well with the data obtained from the XRD technique. (C) 2011 Elsevier By. All rights reserved.