The present study is aimed to eliminate the undesirable microstructure in the real working condition of the steel unit. In this work, the microstructure of hot-rolled medium carbon steel (grade 45C8) is studied for application in the automotive industry. The effect of the temperature and rolling rate on the microstructure has been thoroughly investigated by analyzing the microstructure containing ferrite and pearlite phases after each trial run of hot-rolled steel. The desired microstructure of fine ferrite and pearlite is very much essential in hot-rolled medium carbon steel for better strength and uniform properties of the material. The formation of coarse pearlite is undesirable, which may lead to breakage during drawing and hardness variation in the hot-rolled steel. Therefore, this study is focused to find the optimum condition for achieving the microstructure containing uniform distribution of fine pearlite and ferrite without the presence of blocky pearlite patches.