It has been proven that martensite matrix accompanied by fine reversed austenite is beneficial to improve the strength and toughness in martensitic steels to a certain extent. In order to achieve this unique microstructure, the existing methods, like quenching at high temperatures, multiple heat treatment processes, increasing Ni content, raise the economic cost and operation difficulty. In this work, fine reversed austenite was formed in Fe13Cr4NiMo steel with relatively low nickel content (4 wt%) by one-time relatively low temperature quenching (860 °C) and tempering process. Then the formation mechanism and effect on mechanical properties of reversed austenite were discussed. The 0.55 vol% reversed austenite with the size of 260 nm can be formed in Fe13Cr4NiMo steel under quenching at 860 °C for 40 min and tempering at 650 °C for 2 h. The reversed austenite maintained a deviation of ∼2° from K-S relationship with the martensite matrix. In addition, the formation of reversed austenite was caused by short circuit diffusion of element-free redistribution, which caused the reversed austenite to be more inclined to nucleate at subgrain boundaries and grow up restrictedly. Furthermore, the Fe13Cr4NiMo steel that contained reversed austenite hindering dislocation movement and coordinating deformation possessed excellent plasticity of 18.4 % and Charpy impact energy of 289 J while maintaining high strength of 872 MPa at room temperature.