This study is experimentally investigated whether or not a relationship exists between the mechanical properties anddamping capacity of cold-rolled 316L stainless steel. Deformation-induced martensite was formed with surface relief anddirectionality. With the increasing degree of deformation, the volume fraction of ε- martensite increased, and then decreased,while α'- martensite increased rapidly. With an increasing degree of deformation, tensile strength was increased, and elongationwas decreased; however, damping capacity was increased, and then decreased. Tensile strength and elongation were affectedin the α'- martensite; hence, damping capacity was influenced greatly by ε- martensite. Thus, there was no proportionalrelationship between strength, elongation, and damping capacity.