An enormous amount of research effort goes into the manufacturing process for additive manufacturing (AM) or subtractive manufacturing (SM) process for property microstructure. Moreover, additive/subtractive hybrid manufacturing (ASHM), which combines additive and subtractive processes in a single machine, has provided an important opportunity to increase the high percentage of stock utilization and produce complex functional components. However, the system comprehensive investigation and the study of ASHM-manufactured parts by various process parameters have rarely been reported. The present paper depicted the effect of laser energy density (ψ) on the phase change, density, microstructure, Vickers hardness, and tensile testing within the ASHM specimens. It was observed that the highest Vickers microhardness, the largest tensile strength, and the attendant ductility were gained at ψ =222 J/mm3, the most excellent value, which was put down to the high density and relatively fine grains. The results of this study have a better knowledge of the ASHM method to produce a high surface state and mechanical behavior 316L SS component by governing laser energy density (ψ). [ABSTRACT FROM AUTHOR]