This investigation is concerned with the study of effect of Double Austenitization (DA) and Single Austenitization (SA) heat treatment processes on microstructure and mechanical property of AISI D2type cold worked tool steel. To maximize hardness, tool steels are used in a quenched and tempered condition. This involves heating the material to the austenitizing temperature (~850-1100. °C), quenching at an appropriate rate to form martensite, and tempering to reduce the retained austenite content and induce toughness. The merits of DA treatment isto promote dissolution of carbides at the same time proscribe grain coarsening significantly was attempted in D2 tool steel. The study has found that DA treatment has induced high hardness with insignificant growth in grains. The increase in hardness is attributed to increase in carbon content in matrix due to dissolution of carbides; whereas finer grains due to role of inclusions.