The present work has investigated the evolution of microbands (MBs) and their interaction with strain-induced NbC precipitates during uniaxial compression of a model austenitic Fe-30Ni-Nb steel at 925 °C. The (1 1 0) fibre grains, both without and with copious amounts of precipitates, contained up to large strains crystallographic MBs aligned close to the highly stressed {1 1 1} slip planes having large Schmid factors. The MBs thus maintained their crystallographic character during straining, through continuously rearranging themselves, and did not follow the macroscopically imposed rigid body rotation. During double-pass deformation, fine NbC particles formed at short inter-pass holding remained strongly pinned at small reloading strains and appeared to be dragged by rearranging MB walls. With increasing reloading strain, the fine precipitates became progressively released from the above walls. During reloading after increased holding time, the coarsened particles tended with their increased size to become increasingly detached from the MB walls already at a small strain. The precipitate-free MB wall segments rearranged during straining to maintain their crystallographic alignment, while the detached precipitates followed the sample shape change and rotated towards the compression plane. The MB wall rearrangement generally occurred through cooperative migration of the corresponding dislocation networks.