The high-temperature oxidation behavior of modified 304 austenitic stainless steels in a water vapor atmosphere was investigated. Samples were prepared by various thermo mechanical treatments to result in different grain sizes in the range 8-30 mu m. Similar I 3 pound grain boundary fraction was achieved to eliminate any grain-boundary characteristics effect. Samples were oxidized in an air furnace at 700 A degrees C with 20 % water vapor atmosphere. On the fine-grained sample, a uniform Cr2O3 layer was formed, which increased the overall oxidation resistance. Whereas on the coarse-grained sample, an additional Fe2O3 layer formed on the Cr-rich oxide layer, which resulted in a relatively high oxidation rate. In the fine-grained sample, grain boundaries act as rapid diffusion paths for Cr and provided enough Cr to form Cr2O3 oxide on the entire sample surface.