Stresses are produced during manufacturing of Mechanical parts. Sometimes these stresses are useful and sometimes detrimental for the parts depending upon the application of these parts. The stress generated during the manufacturing processes of parts affects the life of these parts and are responsible most of the time for premature failure of parts. Therefore, the detailed analysis of induced stresses in machined parts is essential to the performance of a machined component. There are many methods available for stress analysis of mechanically manufactured parts. The first type of method which is Non-Destructive techniques i.e., x-ray diffraction, Neutron diffraction, etc. The second type of method is the destructive technique i.e., Contour method and sectioning method. The third type of method which is Semi Destructive techniques i.e., hole drilling, deep hole drilling, etc. The Induced residual stress in a component machined with traditional manufacturing processes i.e., Grinding, Milling, Turning, etc. can be reduced by using the Novel finishing process of BEMRF (Ball End Magnetorheological finishing). This finishing process can produce a very good surface finish with comparatively low induced residual stress in finished components. In this paper, we will explain the residual stress analysis of machined hard metal work-piece before and after Ball End Magneto-rheological finishing. Experimental method employing a Bi-dispersible composition of M R Fluid will be investigated. Further optimization of Bi-dispersible M R Fluid results will be done by use of optimization techniques to find out the best operating parameters to achieve a maximum % reduction in residual stress. M R fluid composition with Bi-dispersible CIP used in this experiment has not been investigated so far by using BEMRF.