Arterial diseases, promoted by alterations in arterial wall properties, are among the main causes of mortality. Mechanical stresses of the arterial wall caused by pulsatile luminal pressure define arterial function in normal and pathological conditions. This study aims to determine dynamic stress distribution in the arterial wall subjected to physiological pressure waveforms. Finite element models of a typical artery are developed to evaluate Von Misses stress in the arterial wall due to physiological pressure waveforms and with differing mechanical properties. Mechanical parameters include Young's modulus of elasticity, non-linear stress-strain relationship and visco-elastic parameter. The appropriate boundary conditions are allocated to allow radial expansion. Application of physiological pulsatile pressure results in stress waves with the values and waveforms markedly influenced by mechanical properties of the arterial wall and blood pressure pulse. Elevated elastic modulus of the arterial wall results in significant increase in maximum stress. Viscoelastic property leads to reduction of the peak stress and smoothening of the stress waveform. The pressure waveform is also a major parameter affecting the stress pattern in arterial wall. Hypertensive arteries result in higher and sharper stress waves not only because of a higher systolic value but also because of the sharper waveform. The combination of these parameters produces the resultant stress pattern in the arterial wall.