Purpose High residual stress caused by the high temperature gradient brings undesired effects such as shrinkage and cracking in selective laser melting (SLM). The purpose of this study is to predict the residual stress distribution and the effect of process parameters on the residual stress of selective laser melted (SLMed) Inconel 718 thin-walled part. Design/methodology/approach A three-dimensional (3D) indirect sequentially coupled thermal–mechanical finite element model was developed to predict the residual stress distribution of SLMed Inconel 718 thin-walled part. The material properties dependent on temperature were taken into account in both thermal and mechanical analyses, and the thermal elastic–plastic behavior of the material was also considered. Findings The residual stress changes from compressive stress to tensile stress along the deposition direction, and the residual stress increases with the deposition height. The maximum stress occurs at both ends of the interface between the part and substrate, while the second largest stress occurs near the top center of the part. The residual stress increases with the laser power, with the maximum equivalent stress increasing by 21.79 per cent as the laser power increases from 250 to 450 W. The residual stress decreases with an increase in scan speed with a reduction in the maximum equivalent stress of 13.67 per cent, as the scan speed increases from 500 to 1,000 mm/s. The residual stress decreases with an increase in layer thickness, and the maximum equivalent stress reduces by 33.12 per cent as the layer thickness increases from 20 to 60µm. Originality/value The residual stress distribution and effect of process parameters on the residual stress of SLMed Inconel 718 thin-walled part are investigated in detail. This study provides a better understanding of the residual stress in SLM and constructive guidance for process parameters optimization.