Laser powder bed fusion (LPBF) is an advanced manufacturing technology that replaces conventional manufacturing methods. Selective laser melting is one of the LPBF techniques that can produce complex geometrical parts with minimum material wastage. The Austenitic stainless steel AISI 316L manufactured by SLM will give good mechanical and metallurgical properties. Heat treatment is required for SLM-manufactured AISI 316L to improve the mechanical and metallurgical properties. This study examines the experimental investigation of additive manufactured AISI 316L, which undergoes annealing heat treatment at a temperature of 1200 °C. In both as-built and heat-treated sample conditions, mechanical properties were examined using microhardness, residual stress, and compression tests. As-built and heat-treated samples exhibit the FCC crystal structure of a stable austenitic phase, and their peak intensities remain unchanged even after heat treatment. Through microstructure investigation and spectroscopic examination, metallurgical characterization was carried out. Finite element modeling was used to validate the experimental results.