Laser cutting of aluminum foam with 9 mm thickness is carried out and thermal stress field developed in the cut section is simulated using finite element code. Morphological changes in the cut section are examined through optical and scanning electron microscopes. The oxide compounds formed at the cut section during the cutting are identified using X-ray diffraction. It is found that parallel sided cut edges are resulted during laser cutting. The maximum von Mises stress in the cut section is on the order of few MPa, which is close to the yielding limit of the workpiece material. Some small scattered sideways burning resulting in local thermal erosion along the cut edges is observed.