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The effect of the laser beam diameter on the microstructure and hardness of 17-4 PH stainless steel manufactured via the directed energy deposition process is investigated. The pore size and area fraction are much lower using a laser beam diameter of 1.0 mm compared with those observed using a laser beam diameter of 1.8 mm. Additionally, using a relatively larger beam diameter results in pores in the form of incomplete melting. Martensite and retained austenite are observed under both conditions. A smaller width of the weld track and overlapping area are observed in the sample fabricated with a 1.0 mm beam diameter. This difference appears to be mainly caused by the energy density based on the variation in the beam diameter. The sample prepared with a beam diameter of 1.0 mm had a higher hardness near the substrate than that prepared with a 1.8 mm beam diameter, which may be influenced by the degree of melt mixing between the 17-4 PH metal powder and carbon steel substrate.