The tensile behaviour of austenitic stainless steel after cryorolling and subsequent annealing has been reported. The defect structures generated during cryorolling, lead to the formation of α’ and ε-martensite. Subsequent annealing leads to the formation of refined austenitic grains surrounded by martensitic islands. These martensitic islands consist of α’ phase only. The dislocation-martensite interaction leads to discontinuous yielding for high Ultimate Tensile Strength (UTS)/Yield Strength (YS) ratio. In case of annealing at 923 K (650 °C) for 10 min after 30% cryorolling leads to nearly 30% untransformed martensite whereas only 7% martensite remains after annealing for 1 h. The effect of remnant martensite on tensile behaviour leading to yield plateau has been discussed in this work. It can be noticed that sample with 20% cryo rolling and annealed at 650 °C for 1 h shows higher YS (721 MPa) with YS/UTS ratio of 0.79 and ~ 18% uniform elongation. Sample with 30% cryo rolling and annealed at 650 °C for 1 h shows YS of 305 MPa with YS/UTS ratio of 0.27 and uniform elongation of ~ 24%. Therefore, 20% cryo rolled and annealed at 650 °C for 1 h has the best combination of mechanical properties.