This study aims to investigate the combined effect of niobium (Nb) microalloying and austenite grain refinement, using a specific heat treatment cycle, on the microstructure and tribological properties of Armox 500T steel. In this work, Nb addition and thermal cycling were utilized for grain refinement and enhancement of the mechanical properties of Armox 500T alloy, to provide improved protection via lightweight armor steel components with a high strength-to-weight ratio. The kinetics of transformation of the developed Armox alloys were studied using JMATPro version 13.2. The samples were subjected to two austenitizing temperatures, 1000 °C and 1100 °C, followed by 4 min of holding time and three consecutive thermal and rapid-quenching processes from 900 °C to room temperature. Scanning electron microscopy with energy dispersive X-ray analysis (SEM-EDX) was employed to analyze the microstructure, which primarily consists of four types of martensite: short and long lath martensite, blocky martensite, and equiaxed martensite. Additionally, a small percentage (not exceeding 3%) of carbide precipitates was observed. The wear characteristics of the investigated alloys were evaluated using a pin-on-disc tribometer. The results demonstrate that alloying with Nb and grain refinement using a thermal cycle significantly reduce the wear rate.