The invention belongs to the field of iron nickel-based martensite precipitation hardening-type alloys, and in particular relates to deformation induced maraging stainless steel with high strength, high toughness and high corrosion resistance and a machining process thereof. The stainless steel is a novel material mainly applied to the important fields of aviation, spaceflight, machinofacture, atomic energy and the like. The steel comprises the following components in percentage by weight: 11.0-13.0 percent of Cr, 11.0-14.0 percent of Ni, 1.5-2.1 percent of Ti, 0.1-1.0 percent of Mo, 0.5-2.0 percent of Cu, 1.5-2.2 percent of Co, 0.5-1.5 percent of Mn, 0.1-1.0 percent of Si, 1.0-2.0 percent of Al, less than 0.01 percent of Nb, less than 0.01 percent of C, less than 0.01 percent of N, less than 0.01 percent of V and the balance of Fe. The machining process comprises the following steps of: (1) heating and forging in an austenite single phase zone, and air-cooling to the room temperature after the forging is ended, wherein the forge and press ratio is 6-9; (2) hot-rolling after the forging is ended and air-cooling to the room temperature after the rolling is ended, wherein the blooming temperature is 1100-1200 DEG C, and the finished rolling temperature is 800-900 DEG C. The invention obtains a martensite matrix with high-order dislocation density through deformation induced martensite phase change and simultaneously obtains high strength, high toughness and high corrosion resistance through adding the proper matching of precipitation strength elements, such as Ni, Ti, Mo, Cu and the like.