This paper describes a three-dimensional finite element model for calculation of the residual stress distribution caused by repair welding. Special user subroutines were developed to simulate the continuous deposition of filler metal during welding. The model was then tested by simulating the residual stress/strain field of a FeAl weld overlay clad on a 2{1/4}Cr-1 Mo steel plate, for which neutron diffraction measurement data of the residual strain field were available. It is shown that the calculated residual stress distribution was consistent with that determined with neutron diffraction. High tensile residual stresses in both the longitudinal and transverse directions were observed around the weld toe at the end of the weld. The strong spatial dependency of the residual stresses in the region around the weld demonstrates that the common two-dimensional cross-section finite element models should not be used for repair welding analysis.