Simulating plastic deformation of a material with a strength gradient from surface to center is not a standard industry practice. Although separate engineering groups have capabilities to perform thermal-structural or operational load analysis, neither have combined nor is focused on integrating effects from heat treatment and straightening operations. The objective of this research is to develop a simulation model to predict axial residual stress at radial holes in a carburized hollow transmission shaft. Abaqus CAE coupled with DANTE Heat Treatment kinetics software will be utilized to simulate the evolution of thermal and mechanical properties of different carburized shaft designs to determine the resulting residual stress at key features. Simulation data shows that the case and core layers react differently to features when a shaft has a bending or straightening load applied. Generally, shafts with smaller radial holes and a farther loading source exhibited compressive axial residual stresses at the case layer with lower average core tensile residual stresses while the shafts with larger radial hole diameters began with tensile stresses at the case following thru higher average core tensile stresses. The radial hole diameter and location only affected the case layer while all three studied features; hole diameter, location, and chamfer size, had significance on the core residual stress. This goes to show that the case and core layers are more complicated than previously thought. Future work should investigate further into how the core residual stresses play a role in fatigue failures.