This paper comprehensively examines three structural steel grades’ microstructural features and mechanical properties, evaluating their suitability for shipbuilding applications. The steels analyzed include quench and tempered (Q and T) steel, thermomechanical controlled processed (TMCP) steel, and hot rolled (HR) steel. A microstructural characterization was performed using optical microscopy (OM), scanning electron microscopy (SEM), and electron backscatter diffraction (EBSD). The analysis was complemented by extensive mechanical testing including assessments of hardness, tensile, and Charpy impact tests across a range of temperatures. Additionally, corrosion behavior was evaluated using the potentiodynamic polarization test. The findings revealed that Q and T grade steel exhibited the most refined microstructure, characterized by a complex mixture of ferrite, tempered martensite, upper bainite, and Fe3C phases. In contrast, the TMCP grade steel demonstrated a balanced microstructure of polygonal ferrite and pearlite. Meanwhile, the HR grade steel contained polygonal ferrite and aligned pearlite. The tensile testing results demonstrated that the Q and T grade steel had superior hardness, yield strength (YS), and ultimate tensile strength (UTS), although it exhibited the lowest elongation % (El %). The TMCP grade steel met all ABS standards for marine steels, displaying optimal YS, UTS, and El %. Despite the superior YS of the HR grade steel, it did not meet the necessary criteria for UTS. Charpy impact tests revealed that the TMCP grade steel exhibited the highest impact energy absorption across a range of temperatures. As a result, the TMCP grade steel emerged as the optimal choice for ship construction, fulfilling all ABS requirements with a balanced combination of strength, ductility, and impact energy absorption. Additionally, the potentiodynamic polarization results revealed that the Q and T grade steel demonstrated the highest corrosion resistance. Following Q and T steel, the HR grade steel ranked second in corrosion resistance, with TMCP steel closely behind, showing only a slight difference.