Residual stress is that which remains in a body that is stationary and at e
quilibrium with its surroundings. It can be detrimental when it reduces the
tolerance of the material to an externally applied force, as is the case w
ith welded joints. On the other hand, it can be exploited to design materia
ls or components which are resistant to damage, toughened glass being a goo
d example. This paper, the second part of a two part overview, the first pa
rt having been devoted to measurement techniques, examines the nature and o
rigins of residual stresses across a range of scales, This extends from the
long range residual stress fields in engineering components and welded str
uctures, through the interphase stresses present in composites and coatings
, to the microscale interactions of phase transformations with local stress
es.