The effect of the phases of v, α' and e martensite, which constitute the structure of the 316L stainless steel with austenite structure at room temperature, on the damping capacity and tensile properties has been investigated. Various fraction of these phases were formed depending on the cold work degree, namely the volume fraction of e martensite showed maximum value about at 20% cold rolling. while the volume fraction of α' martensite continuously rose according to the increase of cold rolling. The behavior of damping capacity with increasing the degree of cold rolling is the same as that of E martensite. The maximum value of damping capacity showed near at 20% cold rolling formed the largest volume fraction of e martensite phase. With increasing the volume fraction of α' martensite, tensile strengths increased and elongation decreased due to the increment in the volume fraction of martensite induced by deformation. The damping capacity and elongation is strongly controlled by the volume fraction of E martensite with liner relationship. however, the effect of damping capacity on the volume fraction of α' martensite and austenite phase was not observed. while, tensile strength was controlled by the volume fraction of α' martensite.