In this study, the shot peening process which is a mechanical surface treatment was applied to AISI 1017 low carbon steel material. The free ball micro abrasion test was applied to the specimens following the peening process. The applied shot peening conditions expose the specimens to higher plastic deformation than traditional shot peening and the aim was to establish fine grain structures on the surface and right underneath the surface. Conventional characterization techniques, such as optical microscopy, scanning electron microscopy and transmission electron microscopy were used to study the microstructure of the fine-grained layer. Microhardness measurements were also performed across the fine grained layer. As a result of the microstructure studies, it was observed that dislocation was extended as a result of plastic deformation in a layer of size 40 mu m on the surface of the specimen. It was observed that the hardness and stiffness of the specimen surface increased due to the peening intensity, and the wear durability increased as a result.