The deformation microstructure of various warm (ferritic) rolled steels was characterized and its influence upon the subsequent annealing behavior determined. The materials investigated included three interstitialfree (IF) steels (stabilized with either titanium or niobium), an extra low carbon (ELC) steel, and four experimental low carbon chromium steels with varying levels of boron, nitrogen and phosphorus. Single pass rolling experiments were conducted in a pilot mill at temperatures between 440 and 850°C and the asrolled microstructures were examined using optical microscopy. Particular attention was paid to the nature and intensity of the in-grain shear bands produced. Partial annealing was conducted to examine the nucleation of recrystallization in the deformed microstructure. Shear bands of moderate intensity were usually formed in the IF steels, which tended to be insensitive to rolling temperature. For the ELC steel, intense shear bands were formed at low rolling temperatures, but at higher temperatures this intensity was found to be drastically reduced. The development of shear bands at the higher rolling temperatures was significantly enhanced by alloying with chromium. The differences in shear band frequency and intensity are explained in terms of the dynamic strain aging behaviors of the various materials. Recrystallized grains were found to nucleate preferentially on the shear bands during annealing, regardless of their morphology or intensity.