The International Maritime Organization (IMO) is promoting the transition to eco-friendly fuels such as hydrogen and ammonia, with the goal of achieving net-zero greenhouse gas emissions in the shipping sector by 2050. Hydrogen does not emit greenhouse gases, but it must be stored at an extremely low temperature of -253°C when stored as a liquid. 316L stainless steel is mainly used as a tank material to store liquid hydrogen. FCAW (Flux Cored Arc Welding) is known for its excellent weldability with 316L stainless steel, and it is particularly suited for welding thick metals efficiently, making it an ideal choice for storage tank welding. Finite Element Method (FEM) analysis can simulate the thermal and mechanical deformations occurring during welding with high precision, allowing for accurate prediction of deformation patterns and the derivation of optimal welding conditions. This ensures the stability and quality of the structure while reducing costs. In this study, FCAW butt welding was performed on 316L stainless steel, followed by cross-sectional observation and deformation measurement of the weld area. Based on the cross-sectional observation, a 3D FE model was designed, and heat transfer analysis was conducted. Subsequently, thermo-mechanical analysis was carried out to predict welding deformation.