This paper brings a failure case study of high strength 0.35C–3.5Ni–1.5Cr–0.5Mo steel fastener, which failed due to hydrogen-induced intergranular stress corrosion cracking (HI-IGSCC). 0.35C–3.5Ni–1.5Cr–0.5Mo steel in hardened and tempered condition, meeting the specified axial tensile stress rating of 1250 MPa is widely used as fasteners in space programmes. In the course of assembly of the structural parts of a satellite launch vehicle, 10 nos of fasteners developed cracks on tightening using a torque wrench set to 6 N m torque surprisingly. Also some fasteners, which were under assembly load of more than 6 months in the same vehicle assembly, were found to be cracked. The failure was attributed to hydrogen-induced intergranular stress corrosion cracking (HI-IGSCC). The details of the analysis and mechanism involved in the HI-IGSCC are presented in detail. Detailed metallurgical analyses of the cracked fasteners support the successive steps of the corrosion enhanced plasticity model, which is based on a local softening in the SCC crack region. The mechanism of a dislocation pileup ahead of a crack under corrosion and stress due to diffusing hydrogen promotes stress concentration against micro-obstacle and caused failure.