This research investigated high-temperature corrosion (500 °C) of Cr-Mo steel processed using water jet peening or multifunction cavitation (MFC), and the suitability of such steel for high-temperature boilers and reaction vessels. High-temperature corrosion was induced using an embedment test and a coating test using sulfide-type K2SO4-Na2SO4 powder. To measure the relaxation of the residual stress due to the decrease in work hardening caused by an increase in specimen temperature and the difference in thermal shrinkage between the surface and interior of the specimen, a thermal cycling test was conducted. For the MFC-processed specimen, the oxide film that formed on the surface suppressed mass loss, prevented crack formation, and reduced the compressive residual stress caused by high-temperature corrosion. MFC-processed Cr-Mo steel is thus suitable for a high-temperature corrosion environment.