Multiple phase transformations were carried out during dehydrogenation process of TiH2-based powder metallurgy. The influence of phase transformation on the microstructure is highly worthy of attention. In situ synchrotron radiation was employed to investigate the phase transformation sequence of TiH2 powder compact during the vacuum sintering process. It was found that a transformation route TiH1.971 → TiH2 + TiH + TiH0.71 + α(H) → TiH + TiH0.71 + α(H) → TiH + TiH0.71 + α(H) + β(H) → α(H) → α took place, resulting in an equiaxed microstructure. Increasing heating rate and avoiding the intense dehydrogenation to retain hydrogen-rich β (β(H)) and TiHx aciculae at the interfaces is found to be a feasible method to fabricate hierarchical α-Ti structures. A fully dense fine martensitic microstructure was produced after fast heating the TiH2 powder compact to 1100 °C and an immediate hot extrusion. Subsequently, by vacuum annealing treatment at 700 °C, composite α/βt lamellar structures were generated and a simultaneously enhanced tensile strength of 746 MPa and excellent elongation to fracture of 33.8% were achieved. It is suggested that adjusting the dehydrogenation reactions of TiH2-based powder metallurgy is conductive to generating hierarchical lamellar structures with a highly promising combination of strength and ductility for pure Ti.