The purpose herein is to improve the understanding of microstructure evolution of inconel 625 alloy during the dynamic recrystallization (DRX) process. Herein, the evolution process of DRX is determined by the grain orientation spread (GOS) method, and 1100 °C is determined as the complete recrystallization temperature. Electron backscatter diffraction (EBSD) and transmission electron microscopy (TEM) techniques are used to investigate the density and morphology of dislocations and stacking faults (SFs), as well as the effects of dislocations and SFs during recrystallization. With increasing recrystallization fraction, the density of dislocations and SFs decreases gradually, the dislocation start is extended, and SFs appear on other crystal planes. The existence of dislocation and SF increases the nucleation energy and nucleation sites of recrystallization, respectively, which is beneficial to the nucleation of DRX.