Inconel alloys and chromium steel alloys are used in high temperature conditions due to their incredible mechanical properties. they both have different chemical compositions and mechanical properties, so we developed dissimilar material welding technology for manufacturing of hybrid structure under optimum welding conditions. The welded structure integrity can be evaluated after residual stress analysis and assessment of mechanical properties. The residual stresses of dissimilar material welded joint was evaluated both experimentally and using Finite element analysis. The results are quantitatively different but they displayed similar distribution pattern across the dissimilar material weld. Peak value was observed at 12 Cr Steel side HAZ. Residual stress values were high in longitudinal direction then transverse direction. For the assessment of mechanical properties, Fatigue and tensile test was performed. The fatigue limit was assessed by 306.8MPa. Tensile test results showed that yield and tensile strength of dissimilar welded joint were higher than those of Alloy 617 base metal and less than those of 12Cr steel base metal.