This research work is focused on simulation of laser assisted turning as a new solution for machining of hard steels. A transient, three-dimensional model was developed to predict the temperature distribution of a rotated cylindrical steel workpiece subjected to a localized heating using a moving Gaussian laser beam. In this regard, a User-Defined Function was created to overcome the problem of a moving Gaussian heat source’ definition. This User-Defined Function was compiled into a finite volume software package (Fluent), where three-dimensional single precision solver was used for analysis. Based on this model, simulation of the surface temperature of 32 mm diameter workpiece of AISI51 50H steel was performed as a function of time at a specific distance behind the laser beam spot, which is corresponding to 30° angle from the laser beam. The simulation results were compared with other published data of the same steel type where a close agreement was obtained. The verified model was used for simulation of laser assisted turning of 20 mm diameter workpiece of AISI D2 tool steel. The cutting depth, behind the laser beam, was set at a distance corresponding to 60° angle from the laser beam for having sufficient access for handling both laser head and cutting tool. This cutting depth was studied as a function of different lasers and machining parameters. The results indicated that the optimum parameters for successful laser-assisted turning process of the concerned steels are 800 W laser power, 5 mm laser beam spot diameter, 20 sec preheating time, 0.8 mm/sec laser scanning speed, 300 rpm rotational speed and 0.8 mm/sec feed rate. These parameters ensure easy/successful cutting of 1 mm depth in one pass without deteriorating the properties of the remaining bulk material. It can be deduced that the developed model might provide a useful tool for online process control of different steel types regardless of their physical properties and geometries.