A welding system and method having power controller with workpiece sensor. In some embodiments, the welding system includes a stud welding power supply having a welding power output, a stud welding power controller, and a workpiece sensor. The stud welding power controller may be communicatively coupled to the stud welding power supply and the workpiece sensor. In certain embodiments, the stud welding power controller is responsive to a signal from the workpiece sensor indicative of a position of a stud in general proximity or engagement with a workpiece.