The distribution of residual stresses (RS) and surface integrity generated in heat treatment and subsequent multipass grinding was investigated in this experimental study to examine the source of variability and the nature of the interactions of the experimental factors. A nested experimental design was implemented to (a) compare the sources of the RS variability, (b) to examine RS distribution and tensile peak location due to experimental factors, and (c) to analyze the superposition relationship in the RS distribution due to multipass grinding technique. To characterize the material responses, several techniques were used, including microstructural analysis, hardness-toughness and roughness examinations, and retained austenite and RS measurements using x-ray diffraction. The causality of the RS was explained through the strong correlation of the surface integrity characteristics and RS patterns. The main sources of variation were the depth of the RS distribution and the multipass grinding technique. The grinding effect on the RS was statistically significant; however, it was mostly predetermined by the preexisting RS induced in heat treatment. Regardless of the preceding treatments, the effect of the multipass grinding technique exhibited similar RS patterns, which suggests the existence of the superposition relationship and orthogonal memory between the passes of the grinding operation.