Automobile, aerospace, and shipbuilding industries are looking for lightweight materials for cost effective manufacturing which demands the welding of dissimilar alloy materials. In this study, the effect of tool rotational speed, welding speed, tilt angle, and pin depth on the weld joint were investigated. Aluminum 5052 and 304 stainless-steel alloys were joined by friction stir welding in a lap configuration. The design of the experiments was based on Taguchi's orthogonal array for conducting the experiments with four factors and three levels for each factor. The microstructural analysis showed tunnel defects, micro voids, and cracks which formed with 0° and 1.5° tilt angles. The defects were eliminated when the tilt angle increased to 2.5° and a mixed stir zone was formed with intermetallic compounds. The presence of the intermetallic compounds increased with the increase in tilt angle and pin depth which further resulted in obtaining a defect-free weld. Hooks were formed on either side of the weld zone creating a mechanical link for the joint. A Vickers hardness value of HV 635.46 was achieved in the mixed stir zone with 1000 rpm, 20 mm/min, and 4.2 mm pin depth with a tilt angle of 2.5°, which increased by three times compared to the hardness of SS 304 steel. The maximum shear strength achieved with 800 rpm, 40 mm/min, and a 4.3 mm pin depth with a tilt angle of 2.5° was 3.18 kN. © 2019 by the authors.