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An austenitic stainless steel was prepared by laser melting. High resolution transmission electron microscopy with energy dispersive spectrometry confirmed the in situ formation of oxide nanoinclusions with average size less than 50 nm. Scanning electron microscopy examination revealed the homogeneous dispersion of the oxide nanoinclusions in the steel matrix. The tensile and yield strengths of the prepared specimens were 703 and 456 MPa respectively with high ductility which is significantly improved compared to its conventionally casted counterpart.