Residual stresses are stresses within a part that result from non-uniform plastic deformation or heating and cooling and play a vital role in ensuring long life of the induction-hardened steel parts. This article provides a description of the formation of residual stresses, and factors affecting their magnitude and distribution as well as their effects on longevity of heat-treated components. The residual stresses of the induction-hardened part are often produced by microstructural transformation, thermal shrinking, distortion, and quenching. Fatigue strength is the main property that gets affected not only by induction hardening but also by residual stresses, quenching conditions, and grain size in the hardened condition. The article concludes with a review of induction heating or hardening in conjunction with other processing methods with examples in terms of properties and, in some cases, effects on residual stress.