Austenitic stainless steels have wide applications due to their excellent properties, such as high strength, corrosion resistance, and superior workability. 304 stainless steel (304SS) is one of the most popular austenitic stainless steels. With a growing emphasis on healthcare, the antibacterial property of the materials becomes increasingly important. Ag is added to type 304 stainless steels to obtain an expected antibacterial property and reduce the occurrence of bacterial contamination. With the development of technology, previous research on Ag-bearing stainless steel was mainly concerned on its antibacterial properties, mechanical properties, and corrosion resistance. However, the microstructures of Ag-bearing stainless steels, especially the occurrence and distribution of Ag, have not been studied intensively. The present work studies the effects of Ag content on the microstructure, texture, and mechanical properties of austenitic stainless steel using OM, SEM, secondary ion mass spectrometer (SIMS), EBSD, and tensile test. SIMS analysis shows that Ag exists in austenitic stainless steel mainly in the form of Ag, Ag _x S, and Ag _x N compounds, which are mainly distributed at the grain boundaries and less within the grain. During recrystallization, the nucleation rate increases by the stimulation of coarse Ag, Ag _x S, and Ag _x N compound particles, while the grain growth is hindered by fine Ag, Ag _x S, and Ag _x N compound particles. Hence, the average grain size of 304, 304Ag-1, and 304Ag-2 stainless steel changes from (126 ± 3) μm to (47 ± 4) μm. The EBSD results show that the maximum pole densities of 304, 304Ag-1, and 304Ag-2 stainless steel samples are 3.24, 2.71, and 2.22, respectively, indicating that Ag can reduce the anisotropy of austenitic stainless steel. The yield strength and tensile strength of austenitic stainless steels decrease with the increase of Ag content, and the elongation increases with the increase of Ag content. Furthermore, strength and elongation consistency of Ag-bearing 304 stainless steel are much better compared to that of 304 steel at the angles of 0°, 45°, and 90° to rolling direction. The phenomenon of high Schmid factor grains surrounding low Schmid factor occurs in austenitic stainless steel, and the average Schmid factor of grains in {111} <110> slip system increases with the increase of Ag content, and the proportion of grains in “soft orientation” increases. Under the given loading stress, Ag-bearing austenitic stainless steel is more prone to deformation.