The aim of the study was to determine the microstructure and residual stress changes which appears in the S235 steel (which is designed for operating in elevated temperatures) during cold rolling. The changes of orientation, both morphological and crystallographic, are occurring as a result of the rolling process. Analysis of the results allowed to determine the change in grain morphology (size, shape), determination of grain morphology of the rolling direction and determination of crystallographic texture. The dislocation density present in the material before and after the cold rolling process was estimated on the basis of dislocation structure images obtained via transmission electron microscope. The observed microstructural changes were correlated with the results of nondestructive testing using eddy current method. They allowed for the identification of the state of stress measured on three different surfaces of the rolled sheet (parallel and perpendicular to the rolling direction). As the result the usability of using the non -destructuve techniques of stress level determination was proved.