Abstract Microstructure and tensile properties of the laser welded joint of Fe–18.8Mn–0.6C TWIP steel were investigated in this research. The microstructure of fusion zone (FZ) was characterized by means of X-ray diffraction (XRD), transmission electron microscope (TEM) and scanning electron microscope (SEM). TEM and in-situ SEM observation were employed to investigate the microstructural evolution and strengthening mechanism of FZ during deformation. The welded joint with a fully austenitic structure was obtained by the laser welding. The granular divorced eutectic phases (Fe, Mn)3C and inclusions formed in the interdendritic regions during the solidification of FZ. The fully austenitic structure and coarse dendrite grains were responsible for the fracture at the weld seam. The FZ exhibited a good combination of strength (e.g. tensile strength up to 1000 MPa) and ductility (e.g. total elongation up to 73%). The microstructural evolution revealed that dislocation slip was the main deformation mechanism at low strains of FZ, while at relatively high strains, mechanical twinning was the domain deformation mechanism and played an important role in improving the strength and ductility as well as the work-hardening effect of FZ.