Laser powder bed fusion (L-PBF) processed Ti–6Al–4V components present two substantial challenges: the presence of tensile residual stress and brittleness of the as-fabricated component due to the formation of the martensite (α′) phase. Industrially, post-heat treatment is performed to improve the quasi-static mechanical properties of the Ti–6Al–4V component through martensite (α′) decomposition and residual stress relaxation. However, detailed insights into the martensite decomposition and stress relaxation mechanisms are still lacking. To address this, in-situ high-energy synchrotron x-ray diffraction (HEXRD) was employed to simultaneously track: (I) martensite (α′) decomposition into a mixture of hexagonal α and body-centered cubic β phases, (II) residual stress relaxation process during heating. Rietveld refinement of 2D diffraction patterns recorded over a temperature range spanning from 25 to 1000°C revealed a three-stage evolution in the α′ unit cell parameters. Unit cell parameter analysis combined with the phase fraction analysis based on the diffraction patterns and the chemical composition profiles predicted by Thermocalc simulation gave detailed insight into the martensite (α′) decomposition process. In Stage 1 (until 375°C), the α′ phase unit cell exhibited linear expansion without indications of any phase transformation or stress relaxation. Upon commencement of stage II at 375°C, an increased expansion rate of the martensite (α′) unit cell was observed, attributed to the enhanced outward diffusion of vanadium (V), succeeded by β phase nucleation at 575°C. Simultaneously, during stage II, residual stress relaxation was observed at both macro and micro scale, culminating in a stress-free state achieved at approximately 750–800°C. Lastly, α-to-β phase transformation was observed in stage 3. The thermal evolution of the hexagonal unit cell dimensions was compared between martensitic and mill-annealed α+β microstructures. This comparison unraveled the link between the initial microstructure and the thermal expansion behavior of the hexagonal α′ and α phase.