The characteristics of residual stresses occurring in PM steel based nickel (FLN2-4405) was investigated. The measurements of residual stresses were carried out by electrochemical layer removal technique. The values and distributions of residual stresses occurring in PM steel processed under various densities and heat treatment conditions were determined. In most of the experiments, tensile residual stresses were recorded in surface of samples. The residual stress distribution on the surface of the PM steels is affected by the heat treatment conditions and density. Maximum values of residual stresses on the surface were observed sinter hardened condition and density. Minimum level of recorded tensile residual stresses are150 MPa and its maximum level is 370 MPa.