The present study evaluates the effects of tensile residual stresses on fatigue behaviour of ASTM A516 pressure vessel steel specimens. In this regard, fatigue specimens containing a smooth notch region are studied. A damage coupled elastic-plastic constitutive material model is developed to investigate effects of residual stresses on fatigue life. Isotropic and kinematic hardening parameters of the material are experimentally determined. Additionally, the damage model parameters are specified from fatigue experiments conducted on standard specimens in different stress ratios. Tensile residual stresses are introduced into the smooth notched specimens through employing four-point-bending method. The hole drilling technique is utilized to measure the residual stress magnitudes. The results indicate that about two third of fatigue life of the specimens is decreased due to the existed tensile residual stresses. Furthermore, fatigue crack initiation and propagation behaviour in the specimens containing residual stress are studied based on the developed continuum damage model.