Abstract. Premature and sudden in service failure of a valve plug due to crack formation, applied in power plant has been investigated. The plug was tempered and heat treated, the crack was originated at centre, developed along the axis and propagates radially towards outer surface of plug. The expected life of the component is 10-15 years while, the component had failed just after the installation that is, within 3 months of its service. No corrosion products were observed on the crack interface and on the failed surface; hence, causes of corrosion failure are neglected. This plug of level separator control valve, is welded to the stem by means of plasma-transferred arc welding and as there is no crack observed at the welding zone, the failure due to welding residual stresses are also neglected. The failed component discloses exposed surface of a crack interface that originated from centre and propagates radially. The micro-structural observation, hardness testing, and visual observation are carried out of the specimen prepared from the failed section and base portion. The microstructure from the cracked interface showed severe carbide formation along the grain boundaries. From the microstructural analysis of the failed sample, it is observed that there is a formation of acicular carbides along the grain boundaries due to improper tempering heat treatment.