Several industrial steels were ground and shot peened. X-ray diffraction measurements were performed for accurate determination of the surface residual stresses. Magnetic Barkhausen noise method was tested for applicability to determine these stresses as well. A modified attached probe with a Hall sensor array for accurate measurement of the surface magnetic field was used. Good linear correlations between the Barkhausen noise parameters and the residual stresses measured by the X-ray diffraction technique were obtained.