Thermal stratification is identified as one of the causes of failure in many nuclear power plant piping. It causes high circumferential temperature gradient in horizontal pipe portions and results in high thermal stresses. In general, most of the piping design codes do not consider these stresses. This paper presents a detail study of thermal stratification stresses and its impact on fatigue life of horizontal portions of NPP piping. The finite element evaluations of thermal stratification stresses are carried out for different constraint conditions at pipe end and for several idealizations of circumferential temperature variation. Simplified equations are developed for calculation of thermal-stratification induced thermal axial and tangential stresses. The thermal stresses evaluated using these developed formulas are compared with the FEM and the test data available in literature. A case study was carried out on a thermally stratified typical NPP surge line. Here the thermal stresses and their impact on fatigue damage was evaluated.