Herein, the effects of Cr–Mo addition on the microstructural evolution and mechanical properties of medium‐carbon steel after spheroidization annealing are systematically studied through scanning electron microscopy, electron backscatter diffraction, and tensile testing. Cr–Mo addition hinders the proeutectoid ferrite + pearlite transformation, thereby promoting the bainite transformation. Moreover, it refines the pearlite lamellar spacing as well as decreases the average carbide diameter, increases the number of carbides per unit area, and hinders ferrite recrystallization. Compared with those in the B1 steel annealed for 8 h, the size of carbides and their number per unit area in the CM1 steel are 30% lower and 2.2‐fold higher, respectively. Due to finer ferrite grains, smaller carbides, and a higher amount of carbides, the strength of steel improves, and the plasticity slightly reduces after Cr–Mo addition. After 2 h of annealing, the yield strengths of Cr–Mo steels are 77.5–109.5 MPa higher than those of base steels; the elongations are above 20%. The contributions of the strengthening mechanism of steel to the yield strength are as follows (from high to low): grain boundary, precipitation, solid solution, and dislocation strengthening.