A new mechanism modelling is proposed in this paper to explain the shot peening effect on fatigue life predictions of mechanical components. The proposed methodology is based on the crack growth analysis of shot peened specimens, which are affected by the interaction of surface roughness and residual stress produced during the shot peening process. An asymptotic stress intensity factor solution is used to include the surface roughness effect and a time‐varying residual stress function is used to change the crack tip stress ratio during the crack propagation. Parametric studies are performed to investigate the effects of surface roughness and the residual stress relaxation rate. Following this, a simplified effective residual stress model is proposed based on the developed mechanism modelling. A wide range of experimental data is used to validate the proposed mechanism modelling. Very good agreement is observed between experimental data and model predictions.