The technique of Laser Non-Uniform Shock Peening (LNUSP) is proposed based on the residual stress distribution in welded joints and the shock wave peak pressure of SUS 304 stainless steel. The study investigated the effects of LNUSP on the mechanical properties of laser beam oscillation welded (LWW) joints of SUS 304 stainless steel. The results indicate that LNUSP induced residual compressive stress with an affected layer depth exceeding 0.9 mm, leading to a more uniform residual stress distribution. LNUSP also induced martensitic phase transformation, altered the grain structure orientation, formed parallel dislocation arrays that refined the grains, increased dislocation density leading to dislocation tangles, and induced mechanical twins of 20–70 nm. Furthermore, LNUSP significantly enhanced microhardness and promoted a more uniform hardness distribution, favoring a better balance between strength and ductility. LNUSP notably increased the yield strength (YS) and ultimate tensile strength (UTS) by 49.4% and 5.1%, respectively, compared to the original samples. The LNUSP-treated samples demonstrated superior strength and plasticity, attributed to the uniformity of internal plastic deformation.