Herein, the microstructural evolution and mechanical properties of a low‐carbon Nb–Ti–Mo‐bearing steel subjected to hot rolling followed by four different processing schedules (air cooling, direct quenching, low‐temperature tempering, and high‐temperature tempering) are studied to elucidate the significance of structural refinement and nanoscale precipitates for obtaining the optimized combination of strength and toughness. The microstructure of air‐cooled steel composed of coarse polygonal ferrite and granular bainite, and minimum yield strength of 473 MPa and lowest impact energy at −40 °C of 40 J are obtained. The microstructure of steel direct quenched and tempered at 520 °C consists of sub‐micron tempered martensitic and bainitic laths with a high relative fraction of high misorientation boundaries and high density of 3–5 nm (Nb, Ti, Mo)C precipitates, and maximum yield strength of 726 MPa and highest impact energy at −40 °C of 213 J are obtained. The formation of nanoscale precipitates coupled with fine tempered martensitic and bainitic blocks contributes to 253 MPa improvement of yield strength and more than five times enhancement of impact energy. The small blocks of tempered martensite and bainite can deviate and finally arrest the crack propagation, whereas the coarse polygonal ferrite and bainite provide inadequate resistance for crack propagation.