Fatigue damage of butt‐welded joints is investigated by a damage mechanics method. First, the weld‐induced residual stresses are determined by using a sequentially coupled thermo‐mechanical finite element analysis. The plastic damage of material is then calculated with the use of Lemaitre's plastic damage model. Second, during the subsequent fatigue damage analysis, the residual stresses are superimposed on the fatigue loading, and the weld‐induced plastic damage is considered as the initial damage via an elasto‐plastic fatigue damage model. Finally, the fatigue damage evolution, the relaxation of residual stress, and the fatigue lives of the joints are evaluated using a numerical implementation. The predicted results agree well with the experimental data.