The 17-4 PH stainless steel is widely used in the aerospace, petrochemical, chemical, food, and general metallurgical industries. The present study was conducted to analyze the mechanical properties of two types of 17-4 PH stainless steel—commercial cold-rolled and direct metal laser sintering (DMLS) manufactured. This study employed linear and nonlinear tensile FEM simulations, combined with various materials characterization techniques such as tensile testing and nanoindentation. Moreover, microstructural analysis was performed using metallographic techniques, optical microscopy, scanning electron microscopy (SEM) with energy dispersive spectroscopy (EDS), and X-ray diffraction (XRD). The results on the microstructure for 17-4 PH DMLS stainless steel reveal the layers of melting due to the laser process characterized by complex directional columnar structures parallel to the DMLS build direction. The mechanical properties obtained from the simple tension test decreased by 17% for the elastic modulus, 7.8% for the yield strength, and 7% for the ultimate strength for 17-4 PH DMLS compared with rolled 17-4 PH stainless steel. The FEM simulation using the experimental tension test data revealed that the 17-4 PH DMLS stainless steel experienced a decrease in the yield strength of ~8% and in the ultimate strength of ~11%. A reduction of the yield strength of the material was obtained as the grain size increased.