Cavitation erosion (CE) of various components in hydroturbines is a critical issue. Several attempts have been made in the past to counter CE through various surface modification techniques. In this study, a novel attempt has been made to modify the surface properties of hydroturbine steel with the aid of friction stir processing (FSP). Metallurgical characterization of the processed steel was undertaken with the help of XRD, SEM/EDS, EBSD and optical microscopy. For mechanical characterization micro-hardness and cavitation erosion studies were conducted. EBSD results confirmed the presence of grains in nano range. Processed steel showed gain in hardness of the order of 160 % in comparison to unprocessed steel. XRD results show a significant variation in the type and quantity of various phases in pre-and post processed steel. It was observed that FSPed steel showed a significant improvement in the erosion resistance in contrast to the unprocessed steel.