This research is focused on understanding the role of microstructural variables and processing parameters in obtaining optimised dual phase structures in medium carbon low alloy steels. Tempered Martensite structures produced at 300, 500, and 650 °C, were cold rolled to varied degrees ranging from 20 to 80% deformation. Intercritical annealing was then performed at 740, 760, and 780 °C for various time duration ranging from 60 seconds to 60 minutes before quenching in water. The transformation behaviour was studied with the aid of optical microscopy and hardness curves. From the results, it is observed that microstructural condition, deformation, and intercritical temperatures influenced the chronological order of the competing stress relaxation and decomposition phase reactions which interfered with the rate of the expected α → γ transformation. The three unique transformation trends observed are systematically analyzed. It was also observed that the 300 and 500 °C tempered initial microstructures were unsuitable for the production of dual structures with optimized strength characteristics.