This paper deals with the residual stress of carburized spur gears is calculated being on the assumption that the main cause of residual stress is the volume difference between case and core due to the martensitic transformation in cooling. A formula is proposed to estimated the residual stress from the hardness and the amount of retained austenite. The estimated residual stress is close to the stress measured by X-ray method. The estimated residual stress is applied to the analysis of the fracture mechanics of carburized spur gear teeth. The stress intensity factor due to the residual stress is demonstrated. The stress intensity factor is computed by the influence function method, and it is shown that the factor is decreased by the residual stress in Carburized gear tooth.