In this paper, the residual stresses due to circumferential arc weld of the thin walled cylinders have been investigated by using finite element method. The cylinders were of aluminum alloy series 5000. The 3D finite element models have been developed in ABAQUS. The thermal-mechanical analysis was considered as uncoupled. The thermal and mechanical material properties have been defined as temperature dependent. The residual stresses were measured by using Hole drilling method. The experimentally measured data have been used to verify the result of finite element model. By using Taguchi method, the effect of eight geometrical, technological and material different factors have been investigated on the maximum residual stresses in the axial and hoop directions. Considering to a number of factors, L12 Taguchi array has been selected. Each factor has been studied in two levels. The result of statistical analyses have shown that increasing the outer diameter, thickness, heat input rate and yield strength in the studied levels caused the axial and hoop maximum residual stresses enhanced. However, the increase of the section number and the interaction between the outer diameter and heat input rate have led to decrease the maximum hoop residual stresses. Also, the yield strength of material was the most effective factor on maximum axial and hoop residual stresses.