Disk grinding is often used to repair the scratches of the surface of the component and also used to weld toe finish to mitigate undesirable stress concentration. This study investigates the effect of disk grinding surface finish on fatigue strength of the nuclear component materials. In order to achieve this objective, fully reversed tension-compression strain-controlled fatigue tests of disk grinding finished austenitic stainless steel SUS316L plate are conducted at RT in air. Two types of disk grinding directions, which are parallel and perpendicular to the cyclic loading direction, are considered in this study, and fatigue test results are compared to S-N curves obtained by emery polishing and lathe machining finished specimens. It is found that the disk grinding surface finish decreases fatigue strength of materials and, in some cases, the fatigue strength of disk grinding finished materials is lower than that of lathe machining finished specimens with maximum height roughness Rz over 100 μm. In order to find out the mechanism of fatigue strength reduction due to the disk grinding, metallographic observations and some measurements such as roughness, hardness and residual stress of the surface are carried out. In addition, the effect of stress concentration and texture of the micro grooves introduced to the surface of the material by disk grinding are discussed.