Stress relaxation during plastic deformation has been reported to improve ductility and alter the mechanical properties of metallic materials. The aim of the present study is to investigate the role of various mechanisms responsible for this in stainless steel SS 316L. The fractography of the tested samples is analysed using an image analyser and the void fraction at failure is correlated with the corresponding mechanisms. The parametric studies on stress relaxation at different pre-strain and relaxation time correlate well with the fractography results supporting the proposed mechanisms. TEM investigation of dislocation structures and void characterisation further confirm the role of dislocation annihilation. Moreover, a novel indentation technique combining micro- and nano-indentation techniques is used to verify the role of stress homogenisation mechanism.