This study investigates the fatigue behaviour and damage mechanisms of the martensitic spring steel SAE 9254, with emphasis on short crack propagation. Shear stress-controlled torsional fatigue tests are performed at stress ratio R = -1 and test frequency f = 79 Hz using structure-sensitive measurement techniques to detect the relevant damage mechanisms. An in-situ torsional fatigue testing device is applied for shear-controlled fatigue tests at two amplitudes of the torsion angle using R = –1 and f = 5 Hz, and the microstructural-dependent short crack propagation path is documented by means of confocal laser microscopy and electron backscattering analysis. It is found that the early development of fatigue damage is characterised by the formation of slip bands, which serve as crack initiation sites. In this process, crack initiation occurs preferentially at or near prior austenite grain boundaries. Furthermore, prior austenite grain boundaries were identified as obstacles for the propagation of short cracks, because of the change of the crystallographic orientation leading to an oscillating propagation rate of short cracks. The short crack density ρCD, which is an important parameter for fatigue damage, is rapidly growing with increasing shear stress amplitude ΔτT/2 and reveals a stress type specific behaviour.