Uniform austenite remaining in the microstructure of the martensitic transformation is called the residual austenite. It is undesirable structure in components, due to its slow decay causes dimensional instability in these components and reducing the hardness. There is a change in volume and it generate internal stress which often appear as cracks. The residual austenite is highly undesirable component in the molded components, as well as the production of gears and bearing components. The article deals with quantification of residual austenite in steels by using the Average peak method by X-ray diffraction. This method applies four separate peaks to determine the amount of austenite.