Inconel 718 (IN718) is a precipitation hardened nickel-base super-alloy exhibiting high strength and good corrosion resistance at elevated temperatures and on the downside it is characterized by poor machinability. Abrasive Water Jet (AWJ) process, offers a potential method to machining difficult-to-cut materials such as IN718. The present work investigates the influence of Abrasive Water Jet parameters on surface roughness, topography, depth of cut and residual stress when milling IN718. Surface characterization was conducted through 3D optical microscopy and SEM techniques. Residual stresses were measured in longitudinal and transverse directions with respect to the machining path using X-ray diffraction (XRD) technique. The obtained results showed that milled surfaces have a homogeneous texture with embedded abrasive particles and high surface roughness. AWJ process introduced high compressive residual stresses with similar order of level in both directions (X and Y). In addition, it was observed that jet pressure is the most influencing parameter on roughness and depth of cut, whilst traverse speed and step-over distance had a significant effect on the residual stress. Based on the experimental analysis, an empirical model to predict the depth of cut was proposed. The validation of the proposed model, has shown around 5% error in the predicted and actual pocket depth.