Prediction of machining-induced residual stresses is an interesting objective inthe field of modelling manufacturing processes. Although Finite Element Ana-lysis (FEA) has been widely used for this purpose, many problems are foundwhen the numerical model is developed. Computational cost and numericalproblems related to the extreme mesh distortion make the effort of finite ele-ment modelling of machining extremely time consuming. The aim of this workis to predict machinning-induced residual stresses using a finite element modelbased in ALE (Arbitrary Lagrangian Eulerian) approach. The finite elementgeneral-purpose code ABAQUS is used, modifying the previous model usedin scientific literature to predict residual stresses. Boundary conditions in theentrance of the workpiece and in the upper border of the chip were modifiedfrom Lagrangian boundaries in the previous model, to Eulerian boundaries inthe new model.Main advantages of the model presented in this work are low level of distortionof the mesh, the possibility of simulate long length of machined surface andtime-efficiency. The model has been applied to calculate residual stresses inAISI 316L during machining. Reasonable agreement with experimental resultshas been found.