The study deals with microstructural evolution of the 304L steel exposed to the low cycle straining. The two states of material were studied, the as-received and solution annealed state. Solution annealing caused grain growth from 29 ± 10 μm to 48 ± 30 μm, reduction of chemical heterogeneity and decrease of overall dislocation density. Cyclic hardening/softening curves were measured and three stages of fatigue life were distinguished. Initial cyclic hardening was followed by cyclic softening. The pronounced secondary hardening was measured in the last stage of fatigue life. Advanced techniques of electron microscopy were used to enlighten origin of the material behavior in particular stages. The material response in individual stages is thoroughly discussed in terms of microstructure evolution. Electron channeling contrast imaging visualized the fine microstructural features and revealed structure evolution, however was not able to identify the features. Transmission electron microscopy is useful for individual structural features characterization, however, it is quite complicated to be performed. Transmission Kikuchi diffraction provided similar results to transmission electron microscopy while characterization of evolved microstructural features revealed the deformation mechanism acting under loading at lower time and relatively smaller effort. Particular damage mechanisms operating in material are linked to the mechanical data.