Two major challenges in relation to laser welding are abrupt change in metallurgical aspects and actual assessment of the mechanical properties due partly to very narrow heat affected zone (HAZ) and partly to high mechanical properties gradient. The rapid thermal cycle of laser welding imposed on the HAZ was physically simulated using a Gleeble (TM) dynamic simulator equipped with a special isothermal quenching device (ISO-Q (TM)), and a relatively large volume of HAZ with a homogeneous microstructure was obtained. The thermal cycles were determined from actual laser welding followed by laser tempering. Estimations of microstructure and mechanical properties of the simulated HAZs of an ultrafine grain steel imposed by laser welding with or without post-weld laser tempering were performed. The results indicate that the simulated HAZs, depending on the thermal history, are composed of lathy martensite with different pocket size and dislocation density. The impact toughness of as-welded HAZ is improved in contrast to the base material, but is further degraded by a following laser tempering, which, however, alleviates the abrupt change in hardness of as-welded HAZ.