The current study examines the effect of grain size on machining-induced residual stresses (RS), during turning, using finite element modelling. Based on the well-known inverse relation between grain size and material strength, the grain size effect was simulated via changing the workpiece yield strength. This was also done at different strain hardening rates. The model was validated using four materials. Larger grain size (lower yield strength) resulted in higher surface tensile RS. This is attributed to the surface layer being subjected to higher compressive plastic deformation, as well as higher workpiece temperatures, which both contribute to higher tensile RS.