In the present work CO2 continuous laser welding process was successfully applied and optimized for joining a dissimilar AISI 316 stainless steel and AISI 1009 low carbon steel plates. Laser power, welding speed, and defocusing distance combinations were carefully selected with the objective of producing welded joint with complete penetration, minimum fusion zone size and acceptable welding profile. Fusion zone area and shape of dissimilar austenitic stainless steel with ferritic low carbon steel were evaluated as a function of the selected laser welding parameters. Taguchi approach was used as statistical design of experiment (DOE) technique for optimizing the selected welding parameters in terms of minimizing the fusion zone. Mathematical models were developed to describe the influence of the selected parameters on the fusion zone area and shape, to predict its value within the limits of the variables being studied. The result indicates that the developed models can predict the responses satisfactorily.