In an attempt to understand the role of retained austenite on the cryogenic toughness of a ferritic Fe-Mn-AI steel, the mechanical stability of austenite during cold rolling at room temperature and tensile deformation at ambient and liquid nitrogen temperature was investigated, and the microstructure of strain-induced transformation products was observed by transmission electron microscopy (TEM). The volume fraction of austenite increased with increasing tempering time and reached 54 pct after 650 °C, 1-hour tempering and 36 pct after 550 °C, 16-hour tempering. Saturation Charpy impact values at liquid nitrogen temperature were increased with decreasing tempering temperature, from 105 J after 650 °C tempering to 220 J after 550 °C tempering. The room-temperature stability of austenite varied significantly according to the(α + γ) region tempering temperature;i.e., in 650 °C tempered specimens, 80 to 90 pct of austenite were transformed to lath martensite, while in 550 °C tempered specimens, austenite remained untransformed after 50 pct cold reductions. After tensile fracture (35 pct tensile strain) at -196 °C, no retained austenite was observed in 650 °C tempered specimens, while 16 pct of austenite and 6 pct of e-martensite were observed in 550 °C tempered specimens. Considering the high volume fractions and high mechanical stability of austenite, the crack blunting model seems highly applicable for improved cryogenic toughness in 550 °C tempered steel. Other possible toughening mechanisms were also discussed.