Residual stresses is one of the vital factors in deciding the performance of all the machining and joining process. Friction Stir Welding (FSW) is belong to the family of solid-state joining processes encounters the problem of residual stresses formation during the metal joining process. Residual stresses in the welded area produces fatigue and stress corrosion cracks leads to premature failure of the components/parts. Residual stress could be either in the form of tensile or compressive or combination of both. In the elastic region, compressive and tensile stress balances each other and maintains equilibrium state. The welded part subjected to cyclic loads and temperature histories creates challenging working condition. The control of residual stresses is now becoming challenging task during manufacturing process and also during service of the end product. This review discusses the source of residual stresses and possible way to measure numerically and experimentally.