JIS SUJ2 is most widely used in bearing steels. The advantages are good hardenability, excellent fatigue, wear resistance and comprehensive mechanical properties. For wear resistance and fatigue resistance of the steel are getting more and more attention, the residual stress state and its distribution on the surface of the heat affect zone are critical factors affecting the fatigue life and wear resistance of the parts. In this study, using the SUJ2 as the material to talk about the surface residual stress and retained austenite distribution. Doing the quenching and tempering treatment to obtain different microstructures, using the induction method to re-quench the case region. After the heat treatment, measuring the residual stress and retained austenite volume on the surface by X-ray diffraction, observing the microstructure and comparing the hardness. The results show that the microstructure after heat treatment contains unsolidified carbides, tempered martensite and retained austenite. The residual stress on the surface is the tensile state. In the re-hardened area after induction quenching, the residual stress is all compressive, and the values are more than -800 MPa. In conclusion, in the same output power condition can be observed that the microstructure of the specimens before induction hardening has a significant impact on the effective case depth. The surface residual stress has changed from a tensile to a compressive state. In the re-hardened area, the maximum of the residual compressive stress increased with the austenitized temperature increase.