We have studied here the isothermal and continuous cooling transformation mechanism of prior austenite and its relationship to fracture behavior of high strength medium Mn steel. Furthermore, the precipitation behavior of cementite was also analyzed. The results indicate that the short rod‐like cementite formed in the martensite matrix during the air‐cooling process, the solubility difference of supersaturated elements provided a driving force for the element diffusion. Accordingly, it was proved that no isothermal transformation of prior austenite occurred during the 360 °C × 7 days isothermal treatment. The lath‐like microstructure was the martensite, which was produced during the subsequent continuous cooling process. The prior austenite was “divided” by the preferential martensite (transformed via heterogeneous nucleation), and the interfaces between preferential martensite and untransformed austenite provided nucleation sites for the subsequent martensite. The introduction of initial martensite before the isothermal treatment led to the reversible brittleness of medium Mn steel. The fracture strength decreased with the increase of the initial martensitic fraction and isothermal time. The grain boundary binding force of prior austenite grains (PAGs) increased in the experimental steels subjected to annealing, and the plastic deformation of the martensite matrix was prior to the grain boundary cracking, which inhibited the intergranular brittle fracture.This article is protected by copyright. All rights reserved.