Submerged jets have a variety of practical applications due to their versatility in providing efficient and environmentally friendly options for treatment in various industries. The physical background is based on the continuous water jet (CWJ) application powered via stagnation pressure. However, it is known that impact pressure is much more effective than static pressure. When the impact pressure is repeated with a high frequency per time unit, the erosive effects of water can be used even at pressures below 100 MPa, which is attractive from the point of view of the low demands of the hydraulic system. Surface modification utilising impact pressure can be achieved by employing the pulsed water jet (PWJ) method. The combination of parameters such as the traverse speed and trajectory pattern can control the number of water clusters impacting the material surface. So far, the field of application of PWJ for surface treatment has mostly been investigated water atmospheric conditions. This article focuses on the possibility of the surface modification of AISI 304L stainless steel using the PWJ method under submerged conditions. The results are compared to those obtained under atmospheric conditions. The reference samples were treated by the same technological conditions using a continuous water jet (CWJ). The affected surfaces were characterised using areal surface roughness parameters Sa, Sz, Sp, and Sv, and the surface topography and mechanism of erosion wear were evaluated by scanning electron microscopy. A significant increase in all roughness parameters was confirmed using the PWJ compared to the CWJ method (both in atmospheric and submerged conditions), which confirms the importance of using impact pressure. The surface treatment by PWJ under submerged conditions resulted in a decrease of the surface roughness parameter Sa by approximately 97% compared to atmospheric conditions at a traverse speed of 2 mm/s for perpendicular interleaved trajectory, nevertheless, the homogeneity of treatment over a larger area was improved.