Differences between up-cut and down-cut grinding are usually not considered since both modes are alternating during conventional face grinding. Nevertheless, there is a pronounced distinction in the fashion of material removal which could lead to unequal states of surface residual stress. By means of X-ray diffraction analysis, ground plates made from three types of steel were investigated in order to compute and compare both macroscopic and microscopic residual stress and domains of coherent scattering. With respect to the main sources of residual stress generation, i.e., plastic and thermal deformation, machining process was carried out in two types of cooling environment. The results indicate significant influence of heat removal since differences between the two grinding modes are virtually nonexistent for liquid cooling, whereas dry grinding results in higher compressive normal residual stresses for down-cut mode in comparison to the up cut.