Residual stress of engineering ceramics is one of surface integrity evaluation indexes affecting the parts’ strength properties. Rotary ultrasonic grinding machining is the most powerful machining method for engineering ceramics with better surface integrity. The residual stress field distribution is changed due to micro cracks which are inevitable in the process. A residual stress distribution model of machined surface micro crack tip has been established in the paper. And the experimental results enable us to obtain surface residual stress distribution of engineering ceramics in rotary ultrasonic grinding machining. Then, we propose an evaluation parameter called confidence stress tolerance to evaluate surface residual stress characteristic. Preliminary results indicate that surface residual stress distribution is in line with the normal distribution. Confidence stress tolerance is an effective parameter to improve the evaluation reliability. Furthermore, precision and affecting factors of confidence stress tolerance evaluation have also been investigated.