This study explores the potential application of utilizing austenitic stainless steel in the production of hollow laminated viscoelastomer-filled steel tube damper (HLVSTD) to extend its use in corrosive environments. To this end, S304 austenitic stainless steel was employed to fabricate the HLVSTD304 specimen. Specifically, material property tests were conducted on S304 austenitic stainless steel materials. Furthermore, cyclic loading tests were carried out on HLVSTDs fabricated from the austenitic stainless steel materials to investigate their mechanical properties and fatigue performance. Finally, nonlinear dynamic time history analysis was conducted to investigate the seismic performance of the structure equipped with HLVSTD304. In the monotonic tensile tests, the S304 stainless steel materials demonstrate a significant enhancement in ultimate strength, strength-to-yield ratio, and elongation. The cyclic loading tests reveal that the HLVSTD304 possesses excellent energy dissipation capacity with a maximum equivalent viscous damping ratio reaching up to 44%, and excellent fatigue performance. The HLVSTD304 exhibits relatively more pronounced cyclic hardening with higher post-yield stiffness, average equivalent stiffnesses, ultimate force, and load capacity stability coefficient. The findings suggest that S304 austenitic stainless steel is a viable material for HLVSTD fabrication, structures equipped with HLVSTD304 demonstrate superior seismic performance.