In this paper, the finite element method (FEM) is conducted for thermal and mechanical analysis of a half 2D axisymmetric welded rotor model. The temperature results after welding are obtained and supported by the experiment results. Furthermore, the thermal strain and residual stress of the weld are analyzed in detail by considering solid-state phase transformation (SSPT). Besides, parametric optimization method is adopted to optimize the region of large stress distribution. By choosing the weld pass number as the optimized parameter, the area decreases by 5.4% when the optimal pass number is 18. The axial and hoop stress distributions are obtained at the inner and outer surfaces near the weld for the better stress distribution.