Material decay in bearing steels under rolling contact fatigue (RCF) leads to fatigue initiation and failure. This study examines the local structure-property relationship in decayed material through in-situ compression testing of micropillars prepared from a dual-hardening martensitic bearing steel (Hybrid 60) before and after RCF testing. The results demonstrate a pronounced enhancement in local yield strength for decayed regions (2200–2340 MPa) as compared to non-decayed regions (1755–1780 MPa). The higher initial stress for dislocations glide in the decayed regions and their discontinuous yield behavior are attributed to the presence of ferrite microbands. Crystal plasticity simulations corroborated these findings, showingincreased critical resolved shear stress (CRSS) and reduced strain hardening in decayed samples.