This paper presents numerical and experimental investigations on laser melting of SS grade 316L powder on top of AISI 316L substrate using a pulsed Nd:YAG laser. The objectives of the present study are to understand the effect of process parameters such as laser power, scanning speed and beam size on geometry characteristics of the melt zone and ball formation. We formulated a moving heat source problem and obtained transient temperature solutions using commercial finite element solver. The geometry characteristics of the melt zone are evaluated from the temperature solutions and compared with experimental results. The effect of laser parameters on the geometry, morphology and homogeneity of single track realization was methodically analyzed by utilizing characterization tools such as laser particle size analyzer, macro and microscopic inspection, Scanning Electron Microscope (SEM), X-Ray Diffraction (XRD) and Fourier Transform Infrared Spectroscopy (FTIR). The results presented in this paper are beneficial to realize homogenous layer formation in additive manufacturing processes involving powder melting by laser beam. © 2014 The Society of Manufacturing Engineers.