The effect of cold rotary swaging and subsequent annealing on the microstructure, texture and mechanical properties of a Fe49.5Mn30Co10Cr10C0.5 middle-entropy alloy was studied. Finite element modeling predicted inhomogeneous stress distribution and temperature gradient during deformation. Microstructure analysis indicated the development of deformation-induced γ→ε martensitic transformation during earlier steps of cold rotary swaging (20–40 % reduction). However, a single-phase face-centered cubic structure was attained after 60–90 % reduction due to reverse ε→γ transformation. Meanwhile, a twin-matrix microstructure was observed in the bar center, whereas an ultrafine microstructure was formed at the bar edge. Post-deformation annealing at 600 °C caused the onset of static recrystallization and thereby the formation of ultrafine dislocation-free grains. Apparently, after 60–90 % reduction, a ⟨100⟩- and ⟨111⟩-fiber texture gradient along the bar cross-section was developed. Besides, at the bar edge, a pronounced B/B‾ shear texture was obtained that transformed into a Cube texture after annealing at 700 °C. Compared to the as-swaged material (yield strength (YS) = 1250 MPa; ultimate tensile strength (UTS) = 1520 MPa; elongation to failure (EF) = 6.5 %), annealing at 500 °C resulted in additional strengthening (YS = 1655 MPa; UTS = 1660 MPa), but EF did not change noticeably. Yet, annealing at 600°С was accompanied by an essential increase in both EF (to 11 %) and YS (to 1500 MPa). The applied approach can be used for obtaining a material with an attractive strength-ductility combination due to overcoming the strength-ductility trade-off.