The strength-ductility trade-off is an inevitable scenario in precipitation-hardened austenitic lightweight steels. The reduction in ductility is due to the shearing of κ′-carbides by dislocations, resulting in limited work hardening capability. Conversely, non-shearable B2 particles can effectively improve the work hardening rate. However, these B2 particles tend to precipitate along grain boundaries and coarsen due to their incompatibility with the austenite matrix, resulting in negligible strengthening effect or even brittleness. We propose a stepwise controllable dual nanoprecipitation strategy to overcome the strength-ductility trade-off. To implement this strategy, we develop a manufacturing process that includes a high-temperature annealing treatment and a three-step aging process (700 °C/15min + 900 °C/15min + 450 °C/1 h). The higher annealing temperature increases the supersaturation of solute atoms in the austenite matrix, which improves the chemical driving force for the precipitation of intragranular B2 particles during aging at 900 °C. Additionally, the coarsened κ′-carbides (30–35 nm) formed during aging at 700 °C provide heterogeneous nucleation sites for the formation of intragranular B2 particles. Further aging at 450 °C promotes the precipitation of nano-sized κ′-carbides (5 nm) within the austenite matrix. The dual nanoparticles provide a significant precipitation strengthening contribution of 400 MPa without sacrificing ductility. The multiple deformation mechanisms of nanoscale “planar slip and Orowan bowing” provide an efficient source of work hardening capability. The present work aims to overcome the strength-ductility trade-off in austenitic lightweight steels by tailoring the precipitation process, which may provide insight into producing high-performance lightweight steels.