The aim of present study is to investigate the influence of heat treatment schedule on the microstructure, tensile properties, and wear behavior of dual phase (DP) steels. In this regard, a cold‐rolled low carbon steel (0.18% C, 1.25% Mn) is subjected to intercritical annealing (IA), step quenching (SQ), and intermediate quenching (IQ) heat treatment cycles to produce DP steels with different microstructures. The results show that the tensile strength, strength‐elongation balance, and wear resistance of DP steels change in the order of SQ < IA < IQ. Variation of work hardening rate (θ = dσ/dϵ) with stress for the IA treated DP steel shows a one stage behavior corresponding to stage III, where θ linearly decreases with increasing flow stress. In contrast, for IQ and SQ treated specimens, a two stage behavior corresponding to an initial rapid decrease of θ with stress (transition stage) followed by stage III hardening are observed. The dominant wear mechanism for DP steels produced by IA and IQ treatments is a combination of abrasion and oxidation, while for the SQ treated specimen, a combination of oxidation and delamination is observed.