The feasibility of the acoustic emission technique in predicting the residual fatigue life of STS304 stainless steel is presented. Acoustic emission was continuously monitored during the fatigue tests. Considerable acoustic emission occurred during the first few cycles. Acoustic Emission increased rapidly at about 90% of the fatigue life, clear and ample warning of impending fatigue failure was observed. Fatigue damage accumulation was evaluated in terms of an AE cumulative counts. The AE cumulative counts may be taken as an indicator of fatigue cumulative damage. Fatigue damages corresponding to 20, 40, 60 and 80% of the total life were induced at a cyclic stress amplitude. The specimens with and without fatigue damage were subjected to tensile tests. In tensile tests, the total cumulative counts were reduced with increasing fatigue damage. It was observed that the residual tensile strength of material did not change significantly with prior cyclic loading damages.