•Understanding influence of processing variables during additive manufacturing of SS 316 to SS 430.•Results show differences in interphase microstructure due to additive manufacturing.•Final products show distinct variation in magnetic and non-magnetic properties. Fabrication of compositionally-graded magnetic-nonmagnetic bimetallic structures was successfully completed using a laser engineered net shaping (LENS™) system. A graded magnetic functionality was implemented by directly transitioning from non-magnetic austenitic stainless steel 316 (SS316) to magnetic ferritic stainless steel 430 (SS430) in a single structure. LENS™ additive manufacturing utilizes a high-powered laser to continuously melt and bond metallic powder in successive layers to create the 3D structure. Microstructures revealed a preferred grain growth direction at the interfaces of the deposited layers. Micro-hardness values across the part’s cross-section exhibited a smooth transition from the highest value of 266 ± 4 HV in the SS430 region to the lowest value at the SS316 substrate of 174 ± 3 HV. Magnetic functionality was observed on the SS430 side of the bimetallic structure, showing how LENS™ can additively combine materials of varying compositions for location-specific functionality.