Laser cutting of large diameter hole in aluminum foam is carried out and morphological changes in the cutting section are examined using scanning electron microscopes, energy dispersive spectroscopy and X-ray diffraction. The thermal stress fields in the cutting section are computed in line with the experimental conditions. Finite element code is incorporated in the numerical simulations. It is found that the cut section is free from defects such as large size burrs and dross attachments. The thermal stress predicted is less than the yielding limit of the workpiece. The presence of air trapped within the pores prior to laser irradiation in the workpiece results in the formation of oxide compounds at the cut sections.