Automotive industries require materials with higher strength, plasticity and crashworthiness, aiming for 3rd generation of advanced high strength steels (AHSS) with medium Mn, Si and minor alloying elements. In this investigation, 3rd generation AHSS were synthesized using a vacuum arc melting furnace with manganese (Mn) and silicon (Si) as major alloying elements as well as minor additions such as Cr, Al, Ni, etc. The steels thus developed were characterized using FE-SEM, XRD, microhardness tester, universal testing machine (UTM) and 3-dimensional Atom Probe Tomography (APT). The alloy steels after casting and homogenization were subjected to hot rolling at 1100 °C, with rolling exit temperature 900 ± 50 °C. The FE-SEM micrographs in SE mode revealed a complex phase microstructure with martensite, ferrite, bainitic ferrite and retained austenite in the specimens obtained after rolling and air cooling. The microhardness of the developed alloys is found in the range of 395–502 VHN in the hot-rolled and air cooled condition of the specimen. The tensile strength of alloys was measured to be in the range of 1412–1614 MPa with elongation of 12.12 %–18.92 %. The analysis of fracture surfaces after tensile tests for developed alloys revealed that Alloy 1 (Fe-4Mn-1.5Si) had dimples indicating ductile fracture while Alloy 2 (Fe-6Mn-1.5Si) has a mixture of dimples and facets, and Alloy 3 (Fe-8Mn-1.5Si) has lower dimples but larger facets, confirming quasi-ductile fracture with a lower ductility limit of 12.12 %. Atom Probe Tomography was performed to study the complex phase structure at nanoscale through re-distribution of carbon and other alloying elements. 3D APT revealed the presence of very fine retained austenite film of thickness ∼4–5 nm and carbon content of 6–8 at.%. This complex phase microstructure obtained after hot rolling and normalizing is made of very fine bainitic ferrite with film type retained austenite providing TRIP effect, in addition martensite and ferrite resulting in high strength.