A 1.5-kW CO2 laser in pulsed mode at 3 kHz was used to investigate the effects of varied laser process parameters and resulting morphology of AISI 316L stainless steel. Irradiance and residence time were varied between 7.9 to 23.6 MW/cm2 and 50 to 167 μs, respectively. A strong correlation between irradiance, residence time, depth of processing and roughness of processed steel was established. The high depth of altered microstructure and increased roughness were linked to higher levels of both irradiance and residence times. Energy fluence and surface temperature models were used to predict levels of melting occurring on the surface through the analysis of roughness and depth of the region processed. Microstructural images captured by the SEM revealed significant grain structure changes at higher irradiances, but due to increased residence times, limited to the laser in use, the hardness values were not improved.