Hard roller burnishing is a cost-effective finishing and surface enhancement process where a ceramic ball rolls on the machined surface to flatten the roughness peaks. The ball is supported and lubricated by hydrostatic fluid in a special tool holder. The process not only improves surface finish but also imposes favorable compressive residual stresses in functional surfaces, which can lead to long fatigue life. Most research in the past focused on experimental studies. There is still a special need for a reliable finite element method (FEM) model that provides a fundamental understanding of the process mechanics. In this study, two-dimensional (2D) and three-dimensional FEM models for hard roller burnishing were established. The developed 2D FEM model was used to study the effects of process parameters (i.e., burnishing pressure, feed rate) on surface finish and residual stresses. The simulation results were evaluated and compared to the experimental data. Results show that the established FEM model could predict the residual stresses and provided useful information for the effect of process parameters. Both FEM and experiments show that burnishing pressure is the most influence, where high burnishing pressure produces less roughness and more compressive residual stress at the surface.