A novel mechanism of post-dynamic softening during annealing of a fully dynamically recrystallized (DRX) austenitic Ni–30Fe alloy is proposed. The initial softening stage involves rapid growth of the dynamically formed nuclei and migration of the mobile boundaries. The sub-boundaries within DRX grains progressively disintegrate through dislocation climb and dislocation annihilation, which ultimately leads to the formation of dislocation-free grains, and the grain boundary migration gradually becomes slower. As a result, the DRX texture largely remains preserved throughout the annealing process.