In this study, friction stir welding of dissimilar 304 stainless steel and commercially pure aluminium was performed under the following condition of tool rotational speed 1000 rpm, traverse speed 60 mm/min and tool tilt angle 2 degree. Microstructural characterisation was carried out by optical microscope, scanning electron microscope (SEM). Optical images shows that the microstructural change is very minimum in steel side when compared to aluminium side due to the difference in mechanical and thermal properties. The intermetallic compound Al3Fe was observed at the interfacial region and stir region of the welded joint. The maximum ultimate tensile strength is 78% of commercially pure aluminium base metal. Microhardness profile was measured across the weld interface and the maximum value reaches at the stir zone due to the formation of intermettalics.