The microstructural and textural evolution, as well as the recrystallization kinetics under different cold‐rolling methods and their influencing mechanism on the properties of the thin‐gauge 3.5%Si nonoriented silicon steel, are investigated by electron backscattering diffraction, X‐ray diffractometer, tensile, and magnetic properties test. The results indicate that compared with the primary cold‐rolling process, the reduction rate of secondary cold‐rolling process is lower (58.3%), and many shear bands are formed in the coarse cold‐rolled sheet, which leads to the formation of strong Goss and cube texture after recrystallization annealing. Owing to the high annealing temperature, the average grain size of finished annealed sheet is little different under different cold‐rolling processes, so the mechanical properties and high‐frequency iron loss are basically the same. The iron loss of the secondary cold‐rolled products decreases with an increase in frequency, and the improvement in the iron loss of the high field (1.5 T) becomes larger than that of the low field (1.0 T). Given the high anisotropy index of the Goss texture, the iron loss anisotropy of the secondary cold‐rolled sheet is higher. Considering the magnetic and mechanical properties, the optimum process is the secondary cold rolling with the intermediate annealing temperature of 900 °C.