A new austenitic stainless steel containing approximately 0.1-1.0 mass % of Si and not more than approximately 0.003 mass % of Al. Nonmetallic inclusions dispersed in a steel matrix are converted to MnO--SiO.sub.2--Al.sub.2O.sub.3 containing not less than approximately 15 mass % of SiO.sub.2 and not more than approximately 40 mass % of Al.sub.2O.sub.3. During steel making, molten steel is covered with basic slag and heavily deoxidized with a Si alloy whose Al content is controlled to not more than approximately 1.0 mass % in a vacuum or non-oxidizing atmosphere. The austenitic stainless steel sheet can be formed to an objective shape without the occurrence of cracking due to its decrease in susceptibility to cracking and its good formability.