This study extends the plastic strain energy approach to predict the fatigue life of AISI 304 stainless steel. A modified energy parameter based on the stable plastic strain energy density under tension conditions is proposed to account for the mean strain and stress effects in a low cycle fatigue regime. The fatigue life curve based on the proposed energy parameter can be obtained directly by modifying the parameters in the fatigue life curve based on the stable plastic strain energy pertaining to fully reversed cyclic loading. Hence, the proposed damage parameter provides a convenient means of evaluating fatigue life on the mean strain or stress effect. The modified energy parameter can also be used to explain the combined effect of alternating and mean strain/stress on the fatigue life. In this study, the mean strain effects on the fatigue life of AISI 304 stainless steel are examined by performing fatigue tests at different mean strain levels. The experimental results indicate that the combination of an alternating strain and a mean strain strongly influences the fatigue life. Meanwhile, it is found that the change in fatigue life is sensitive to changes in the proposed damage parameter under the condition of a constant strain amplitude at various mean strain levels. A good agreement is observed between the experimental fatigue life and the fatigue life predicted by the proposed damage parameter. The damage parameter proposed by Smith et al. (1970) is also employed to quantify the mean strain effect. The results indicate that this parameter also provides a reasonable estimate of the fatigue life of AISI 304 stainless steel. However, a simple statistical analysis confirms that the proposed damage parameter provides a better prediction of the fatigue life of AISI 304 stainless steel than the SWT parameter. © 2006, Taylor & Francis Group, LLC.