To reveal the effect of stress triaxiality on plastic damage evolution and failure mode, 316L notched specimens with different notch sizes are systematically investigated by digital image correlation (DIC) observation, plastic damage analysis by finite element simulation, and void mesoscopic observation. It was found that the plastic damage evolution and failure mode are closely related with notch radius and stress triaxiality. The greater the stress triaxiality at the root is, the greater the damage value at the root is and the earlier the fracture occurs. Moreover, void distribution by mesoscopic observation agrees well with damage distribution observed by finite element simulation with the Gurson-Tvergaard-Needleman (GTN) damage model. It is worth noting that, with the increase in stress triaxiality, the failure mode of notched specimen changes from ductility fracture with void coalescence at the center position to crack initiation at the notch root, from both mesoscopic observation and damage simulation.