Shot peening can be an effective solution for the prevention or retardation of scale formation, and subsequent exfoliation, upon exposure of the inner tube to steam in coal-fired power plants. In this study, specimens of T91 tubes were shot peened and then exposed to 1-bar steam for 100–1000 h at 650 °C, and were then analyzed using Vickers hardness test and microscopic techniques OM, SEM, TEM, etc. The analysis indicates that the oxide scales are typically Fe2O3 on the topmost layer, Fe3O4 below, and a FeCr2O4 spinel on the bottom in both shot peening treated and untreated specimens. However, the oxide scale thicknesses of shot peened specimens are thinner, indicating that shot peened specimens have better oxidation resistance. In addition, numerous defects, such as voids and micro-cracks, were found in the untreated specimens, which are believed to cause exfoliation of the uppermost Fe2O3 layers of the specimens exposed to steam for 800 and 1000 h. By contrast, the shot peened specimens maintained a dense contact oxide scale with fewer defects.