Tube hydroforming (THF) is a well established process in the automotive industry and its application is being extended to the aerospace for manufacturing complex geometries. However, most of the alloys used in aerospace are high in strength and low in formability, which renders the application of THF more challenging. The objective of this paper is to present a method to increase the formability of an austenitic stainless steel. A multistep forming process was simulated through interrupted uniaxial tensile testing experiments to study the influence of the latter process on formability. The tensile test was divided into several deformation steps with a stress relief heat treatment after each forming step. The results indicated that the application of intermediate heat treatments considerably increased the formability of the stainless steel 321 alloy (SS321). Microstructure evolution as a function of deformation or heat treatment parameters was also investigated and revealed the formation of strain-induced martensite after the first deformation and heat treatment cycle without any deleterious effect on formability enhancement.