The effects of rare earth (RE) elements on the carbide distribution, transformation temperature, and mechanical properties of H13 die steels after annealing were systematically investigated by scanning electron microscopy, electron probe microanalysis, and transmission electron microscopy. The results indicated that the addition of RE elements is helpful in increasing the fraction of the disrupted M23C6 carbide along the grain boundaries, hindering the migration of grain boundaries and improving the crack-formation and expansion resistance of the carbides in the tensile process. With the addition of RE, the Ac3 temperature increased by 11.4 °C and the diffusion of carbon atoms was pinned during the austenitizing process. Moreover, the carbides were modified by rare earth elements, and RE-inclusion promoted the transition of brittle-type failure to ductile-type failure. Therefore, the impact energy, hardness, and ultimate tensile strength improved significantly in the RE-modified H13 die steels.