The functionality of coatings are affected by internal stress which is a common problem of the electroplating process. The parameters of electrodeposition and additive particles which are insoluble in the bath change the characteristics of the plating and affect the internal stress of the coatings. The influence of the electrodeposition parameters and their interaction effects on the internal stress of Ni deposits were studied by fractional factorial design. The studied parameters included temperature, pH, current density and bath composition. It was found that increasing temperature and deposit thickness and decreasing boric acid and chloride ions resulted in decreasing the internal stress within the parameter ranges covered in this study.