In this paper, the phase transformation and residual stress distribution in the grinding of Maraging C250 steel were investigated. The wheel revolution per contact length is proposed as the effective wheel revolution to describe the effects. The occurrence of intensity changes, peak appearance, and indices of lattice on X-ray diffraction illustrates that the process parameters would influence the phase transformation, compressive stress, and tensile stress. The increment of effective wheel revolution will result in reduced phase transformation and enhanced residual stress. Finally, this study offers suggestions on the combination range of relevant process parameters based on the analysis.