Residual stresses from the machining process can cause severe failure due to fatigue and stress corrosion. The depth profile of residual stress was measured for high-pressure water-jet assisted machining of Ti-6Al-4V alloy using x-ray diffraction. As comparison, the depth profile of residual stress was also measured for the conventional machined work-piece. The finite element simulation, using the updated Lagrangian formulation was also used to study the dynamic transient process. It was found that the residual stress was a function of machining parameters, such as cutting speed, feed force, depth of cut and particularly the high-pressure jet increases the amount of residual compression stresses in both cutting and feed directions. It is shown that the high-pressure water-jet assisted machining of titanium alloys is beneficial. It reduces shear forces in the secondary cutting zone along the tool/chip interface, reduces the cutting force and introduces compressive residual stress in the finished work-piece.