A novel non-bonded interface technique (NBIT) is used to analyze internal residual strain by combining a pre-split sample of AISI 4340 steel with the circular grid residual strain analysis technique. NBIT is compared with an implicit non-linear finite element (FE) model using LS-DYNA. A split FE model was compared with a quarter FE model to determine the split interface that causes an average difference of 9.0% on the residual von Mises strain field from a 588.6 N indentation. The homogeneous FE quarter model was then compared with the experimental split model using 588.6, 981.0, and 1471.5 N indentation forces. An average displacement difference of 3.92 µm was found when comparing the experimental split and FE homogeneous samples from a 588.6 N indentation. The internal residual major and minor principal strains from the split experimental sample and homogeneous FE model were compared for each indentation force. The minor principal strain results show the 588.6, 981.0, and 1471.5 N indentation forces resulted in a difference between the experimental split and homogeneous FE model of 28.5%, 34.8%, and 26.0%, respectively. The difference between the comparisons was explained by the inability of the FE model to simulate local non-homogeneous material properties such as grain composition and orientation whereas NBIT does. NBIT can be used for micro- or macro-scale residual strain analysis as the spatial resolution is highly adjustable.