A finite element (FE) method was used to determine the important heat treating process parameters that impact the residual stress and distortion in steel. The FE model combines a commercially available heat treatment software DANTE to the finite element analysis software ABAQUS. A thermomechanical FE model was developed to model the evolution of microstructure, the volumetric changes associated with the kinetics of martensitic phase transformation and the formation and distribution of residual stress during quenching of steel. Alternative quenching parameters such as different steel grades, quenching orientation, immersion speed, quenching agent, quenching temperature, austenitizing temperature and part geometry were ranked based on their impact. The main purpose of this paper is to provide processing guidelines to control residual stress and distortion.