This study first investigated cracks on the surface of an actual steel strip. Formulating the Anand model in ANSYS software, we then simulated the stress field in the molten pool of type 304 stainless steel during the twin-roll casting process. Parameters affecting the stress distribution in the molten pool were analyzed in detail and optimized. After twin-roll casting, a large number of transgranular and in-tergranular cracks resided on the surface of the thin steel strip, and followed a tortuous path. In the molten pool, stress was enhanced at the exit and at the roller contact positions. The stress at the exit decreased with increasing casting speed and pouring temperature. To ensure high quality of the fabricated strips, the casting speed and pouring temperature should be controlled above 0.7 m/s and 1520°C, respectively.