The influence of a novel two-step austempering process on the microstructure and the near threshold fatigue crack growth behavior of austempered ductile cast iron (ADI) were investigated. Cylindrical tensile and compact tension (CT) specimens (for fatigue threshold tests) were prepared from an alloyed nodular ductile cast iron as per ASTM standards and were austempered by both the conventional single-step and the novel two-step austempering processes at four different temperatures. The near threshold fatigue crack growth behavior of these samples was examined in room temperature and ambient atmosphere. Tests results indicate this two-step austempering process has resulted in higher hardness, higher yield and tensile strengths for ADI but higher near threshold fatigue crack growth rate and lower fatigue threshold, as compared to the conventional single-step austempering process. Results also demonstrate that fatigue crack growth behavior of ADI in the near threshold region is influenced by microstructural parameters, such as volume fraction of austenite ( X γ), carbon content in austenite ( C γ), ferritic cell size ( d) as well as total austenitic carbon, X γ C γ. SEM fractographs in all samples exhibit a combination of mechanisms, i.e. ductile striation with quasi-cleavage facet around graphite nodules.