The present study compares slurry erosion resistance of austempered and tempered medium carbon high silicon steels. A 0.62C-1.91Si-0.85Mn-0.23Cr steel was subjected to austempering at 300, 350 and 400 °C for 10 min to develop a microstructure comprising of bainite and retained austenite. With the increase in the austempering temperature, the mechanical stability of retained austenite decreased, and the size of bainitic ferrite laths increased. As a result, strain hardening ability and toughness of the steels decreased with austempering temperature. Another set of steel with the same composition was quenched and tempered at 300, 450 and 550 °C for 60 min. An increase in the tempering temperature led to an increase in the size and fraction of carbides and a decrease in the mean free path and dislocation density. Strain hardening ability and toughness of tempered steels was substantially small than austempered steels. Both the austempered and tempered steels were subjected to slurry erosion. Austempered steels exhibited higher slurry erosion resistance as compared to tempered steels. Slurry erosion resistance of austempered steels has been noted to depend on the mechanical stability of retained austenite and the size of bainitic ferrite laths. Due to the difference in the extent of deformation-induced transformation of retained austenite into martensite in the steels austempered at different temperatures, number of mobile dislocations generated (to accommodate the dilatation due to transformation) in bainitic ferrite laths differed. A large number of mobile dislocations in the specimens austempered at 300 °C blunted the propagating crack and delayed the material loss during erosion. The erosion resistance of tempered steels was observed to decrease with an increase in tempering temperature. A large fraction of coarse carbides led to the formation of many decohesion sites in steels tempered at 450 and 550 °C. Further, a small number of mobile dislocations present per unit volume in the steels tempered at high temperatures could not resist the propagation of cracks nucleated from the decohesion sites leading to a high erosion rate in these steels.