An efficient small scale TEA (Transversely Excited Atmospheric) CO2 laser has been considered. The laser was a low flowing, UV preionized, pulsed system. Specific design of the head as well as the electrical circuit ensure the laser operation with high efficiency and reliability. Nonconventional C02/Y, Y N21H2; H2IFJe and H2 gas mixtures showed relatively high energy output. C021N2/H2 mixture as the most superior one produces output energy and peak power of220 mJ and I .40 MW, respectively. High-energy output of the laser was employed for surface modification of austenitic stainless steel AISI 3 1 6 and titanium nitride (TiN) coating deposited on the same steel substrate. Used laser peak power densities of 100 and 170 MW/cm2 have induced the morphology changes of AISI 3 16 steel and TiN coating, respectively.