The formation of ultrafine ferrite by strain induced transformation is assessed using rolling and hot torsion experiments. These experiments are used to examine the impact of thermomechanical processing conditions and steel chemistry on strain induced austenite to ferrite transformation and the formation of ultrafine ferrite. The critical strain for dynamic strain induced transformation increased with increasing carbon equivalence, deformation temperature and austenite grain size. The deformation structure in the austenite grains changes with the thermomechanical processing conditions. Drawing on these results and the current literature, the important factors for the production of ultrafine ferrite are described and a mechanism is proposed.