To elucidate the response of austenite reversion and subsequent bainite transformation behavior to the prior austenite grain (PAG) size, the transformation kinetics and amount of reverted austenite in the intercritical region, the subsequent bainite transformation kinetics, and the tensile properties were investigated by dilatometers, scanning electron microscopy, electron backscatter diffraction, transmission electron microscopy, and the mechanical tests. The results show that, when annealed at 730 °C, fine-grained specimens exhibit faster reverted austenite transformation rate than coarse-grained specimens due to the presence of more PAG boundaries. As the intercritical temperature rises to 760 °C, more intragranular globular austenite forms in the coarse-grained specimen, which accelerates the reverted austenite transformation rate. Compared to fine-grained specimens, coarse-grained specimens exhibit faster bainite transformation and higher amount of bainitic ferrite. The microstructure after austempering consists of intercritical ferrite, bainitic ferrite, RA and fresh martensite. With increasing the austempering time, more bainitic ferrite is formed and the amount of RA and fresh martensite decreases. With increasing the austempering time, the increase in the amount of bainitic ferrite leads to an increase in the yield strength, while the decrease in the amount of RA leads to a decrease in the elongation. Moreover, compared with coarse-grained specimens, the finer microstructure in fine-grained specimens improves yield and tensile strengths, while higher amount of RA contributes to larger uniform and total elongations.