The full width at half maximum (FWHM) of XRD profiles is used to characterize different material properties and surface integrity features. However, there is no literature available that discusses the nature of the correlation between the FWHM of XRD peaks with induced surface residual stress upon grinding with simultaneous occurrence of plastic deformation, formation of white layer, grain elongation, change in microhardness, etc. AISI 1060 steel samples were ground under different grinding domains, i.e. conventional abusive grinding, conventional grinding, cBN grinding and high speed grinding with moderately deep cut. Induction of tensile and compressive residual stress, microstructural changes, white layer formation, grain refinement, plastic deformation, grain elongation and change in microhardness were observed upon grinding AISI 1060 steel. A correlation was established between the FWHM of XRD peaks and surface residual stress when simultaneous changes in microhardness and microstructure, grain elongation, plastic deformation and formation of white layer take place due to grinding. The correlation between FWHM of XRD peak and residual stress appears to be nonlinear due to simultaneous change in other aspects of surface integrity.