Two different kinds of undercut were identified when laser hybrid welding hot rolled HSLA-steel in either the as-rolled condition or with the top surface mill scale removed. The presence of mill scale on the steel surface was found to give a sharp angled undercut combined with a sharp oxide inclusion at the edge of the weld which would have the same mechanical effect as a crack in this position. Removal of the surface oxides before welding resulted in the elimination of the oxide inclusions and a more rounded undercut geometry indicative of superior mechanical properties, particularly fatigue life. The mechanisms of the formation of both types of undercut have been analysed by high speed photography and SEM.