The characteristics of microstructure and properties of Cr12MoV die steel with austempering were investigated by scanning electron microscope, electron backscattered scattering detection, X-ray diffractometer and Rockwell hardness tester. The results indicated that the tempering process reduced retained austenite apparently, especially after direct quenching process which decreased the volume fraction of retained austenite from 24.8% to 8.5%. Prolonging the holding time of isothermal quenching from 3h to 5h promoted the transformation of lower bainite and reduced the content of residual austenite. The bainite formed in isothermal combined with the secondary hardening caused by austenite decomposition made the hardness of 55.9-56.6HRC similar to that of 57.2HRC by direct quenching and tempering.