The carburizing period for tool steel could be significantly shortened by operating at a higher carburizing temperature. However, grain coarsening happens during the carburizing process, and then results in the deteriorated surface properties in 20CrMnTi gear steel, especially at an elevated carburizing temperature. The relationships between grain coarsening and the precipitates in the developed 20CrMnTi gear steel during pseudo-carburizing were established by microstructure characterization, precipitate analysis and in-situ observation to clarify the coarsening mechanism. The results manifested the Baker–Nutting orientation relationship between the (Ti, Mo)(C, N) particles and the matrix, and then testified to the redissolution and ripening of the (Ti, Mo)(C, N) precipitates pre-formed in the α phase during the carburizing. Coarsening in austenite grain during the carburizing process was mainly caused by the rapid redissolution and ripening of the (Ti, Mo)(C, N) precipitates, although this occurred in a very short pseudo-carburizing time. The area density of the dispersed unripe (Ti, Mo)(C, N) particles markedly decreased from 0.389% in as-hot rolled gear steel to 0.341%, and then from 0.279% in carburized steels at 970 and 980 °C, respectively. Additionally, the redissolution and ripening of the (Ti, Mo)(C, N) precipitates were accelerated by the elevated carburizing temperature of 980 °C, at which time the growing rate in austenite grains was 2.34 μm/min during the prior 1 min (0.79 μm/min during the prior 3 min at 970 °C). The temperature then decreased to 0.003 μm/min in the subsequent carburizing process. The results obtained our current work reflected that the particles with excellent thermal stability should play important roles in the limitation of grain coarsening during the carburizing process.