To investigate the influences of solid state phase transformation on stress evolution during laser matal powder deposition, a 3D finite-element thermo-mechanical model considering phase transformation effects is established. The stress fields during single layer and multiple layer laser metal deposition process are analyzed. Stress measurement of blind hole method is applied to cladded samples. The results are compared with the computational predictions, which should be a validation for the predictions with the inclusion of transformation kinetics. The importance of considering phase transformation effects is verified through the comparison of the magnitudes of residual stresses with and without the inclusion of transformation kinetics.