The effects of dynamic and post-dynamic recrystallization (DRX and post-DRX) on the microstructure and mechanical properties of austenitic stainless steels are critically reviewed. Particularly, the paper is focused on the grain refinement and strengthening by large strain deformation including severe plastic deformation conditions. The DRX and post-DRX microstructures are considered with close relation to the operative recrystallization mechanisms. Specific emphasis is placed upon two recrystallization mechanisms, that is, discontinuous and continuous, and their dependence on the deformation/annealing conditions. The relationships between DRX microstructures and processing conditions are summarized and their effect on post-DRX behavior is clarified. The structural strengthening mechanisms including the grain size and the dislocation density are elaborated.