Weldments are susceptible zones of localized attack in austenitic stainless steel components, as they are characterized by chemical and microstructural inhomogeneities. No review exists in Literature, which brings out the complex and diverse nature of localized corrosion of weldments. This paper, therefore, reviews various factors that are associated with pitting corrosion and stress corrosion cracking problems. In addition, the role of N as an alloying element towards the above failures are discussed.