Numerical and experimental studies have been carried out to investigate the evolution of residual stresses in quenched components induced by temperature gradient and phase transformations. In the numerical analysis, a finite element model is implemented for predicting the temperature field, phase changes with their associated internal stresses in axisymmetrical steel components. The model is verified by several comparisons with other known numerical results. Case studies are performed to investigate the effects of the quench bath temperature and the specimen geometry. Specimen geometry has been analyzed by introducing a hole in a cylinder and varying hole diameter and its eccentricity. Experiments include microstructural examination and X-ray diffraction measurements of surface residual stresses.