A novel single-pass hot strip rolling process has been developed in which ultra-fine (<2 μm) ferrite grains form at the surface of hot rolled strip in two low carbon steels with average austenite grain sizes above 200 μm. Two experiments were performed on strip that had been re-heated to 1250°C for 300 s and air-cooled to the rolling temperatures. The first involved hot rolling a sample of 0.09 wt.%C–1.68Mn–0.22Si–0.27Mo steel (steel A) at 800°C, which was just above the Ar 3 of this sample, while the second involved hot rolling a sample of 0.11C–1.68Mn–0.22Si steel (steel B) at 675°C, which is just below the Ar 3 temperature of the sample. After air cooling, the surface regions of strip of both steel A and B consisted of ultra-fine ferrite grains which had formed within the large austenite grains, while the central regions consisted of a bainitic microstructure. In the case of steel B, a network of allotriomorphic ferrite delineated the prior-austenite grain boundaries throughout the strip cross-section. Based on results from optical microscopy and scanning/transmission electron microscopy, as well as bulk X-ray texture analysis and microtextural analysis using Electron Back-Scattered Diffraction (EBSD), it is shown that the ultra-fine ferrite most likely forms by a process of rapid intragranular nucleation during, or immediately after, deformation. This process of inducing intragranular nucleation of ferrite by deformation is referred to as strain-induced transformation.