This work presents the results of phase transformation kinetics during continuous cooling in newly developed high strength low-alloy steel (HSLA). Initial theoretical calculations for the determination of heat treatment parameters were conducted. To determine the structural constituents formed due to the austenite decomposition the dilatometry approach was used. The material was cooled down from the austenitization temperature of 1000 °C with cooling rates between 0.1 °C/s to 60 °C/s. Then, light and scanning electron microscopy investigations were carried out. The microstructure after cooling at rates between 0.1 °C/s up to 1 °C/s is mainly ferritic with some fraction of granular bainite. Increasing the cooling rate led to formation of a higher fraction of bainitic ferrite. At 60 °C/s the microstructure was mainly bainite with some fraction of ferrite. To determine the presence of retained austenite, color etching using Klemm solution was used. The results show that the increase of cooling rate decreases the amount of retained austenite in the microstructure of the steel. Hardness measurements were made to determine the changes in the mechanical properties as a function of the cooling rate.