This study investigates the effects of laser scribing process parameters on the surface quality and magnetic properties of 0.27 mm thick grain-oriented silicon steel. Experiments were conducted using industrial laser scribing equipment to determine the optimal parameterization for balancing surface quality and magnetic properties. The results show that laser scribing damages the insulation coating on the surface of grain-oriented steel and this damage is deepened with the increase of laser power. When the laser power is 4.5 kW, the average depth of groove exceeds the total thickness of insulation coating, resulting in the exposure of substrate. With the increase of notch spacing, iron lose reduction ratio increases first and then decreases, so the best result could not be obtained if the notch spacing is too large or too small. The magnetic induction of grain oriented silicon steel reduces overall after laser scribing, and the reduction expands with greater laser power. However, the reduction of magnetic insulation can be controlled within 0.01 T when the laser power is in the range of 3.54.3 kW. Within the scope of the process examined in this study, the optimal laser scribing parameters are laser power of 4.3 kW and notch spacing of 5 mm, which can reduce the iron loss of grain-oriented silicon steel by 13.43%, with hardly noticeable damage of insulation coating.