The recrystallization of austenite in plain carbon steel (C-Mn) following high temperature deformation is a rapid process which may take only fractions of a second to complete. ~-1~ It is also well known 1"2 that additions of minute amounts of elements such as niobium to a C-Mn austenite strongly delay the recrystallization of austenite, and are responsible for the development of pancaked austenite during controlled rolling. While this retarding effect of niobium has been recognized for almost 20 years,11'12 there continues to exist some controversy about the nature of the mechanism responsible for the observed retardation. Some authors 13'14'15 suggest that this retardation results from solute drag effects, while others 16-18'2~ propose that it results mainly from precipitation effects. Results of recent work 7'19 indicate that recrystallization is substantially delayed in Nb-bearing austenite decarburized to carbon levels of 0.002 pct. Since precipitation has been prevented by the decarburization treatment, the observed retardation is attributed to solute drag effects alone. However, the question remains as to which mechanism is, in fact, responsible for the observed recrystallization retardation, when precipitation is allowed as a competing process at the normal carbon levels (->0.02 pct C) typical of microalloyed (MA) steels. Retardation of recrystallization of the microalloyed austenite unequivocally attributable to precipitation effects has been extensively reported from results of experiments performed using different techniques. These include direct studies of precipitation using electron microscopy of thin foils and replica specimens, 7'16-18'2~ gross precipitate extraction, 5'~9 and indirect interrupted mechanical testing methods.6 10.13-15,17-19 However, in most of these studies, the lack of rapid quenching prevented reliable metallographic observations from being made during the first few critical seconds after the completion of the deformation. At the same time, it is well known that C-Mn austenite can undergo significant recrystallization in elapsed times of the order of one second s-1~ when deformed under conditions similar to those employed in the precipitation studies in the MA steels. The inability to observe specimens quenched within a fraction of a second has, therefore, restricted our understanding of the role played by precipitation in the early stages of retardation of recrystallization. The purpose of this paper is to demonstrate that when hot deformation is followed by rapid quenching, it is possible to show clearly that well-developed precipitates do form in austenite in less than 0.5 second. The steel investigated has the following chemical composition, in weight percent: 0,08 C, 1.25 Mn, 0.40 Si, 0.005 P, 0.005 S, 0.07 Nb, and 0.025 N. The steel was