In order to improve the microstructure and mechanical properties of gas metal arc dissimilar weldment of AISI 304 and 1020 carbon steel, different post-weld heat treatment (PWHT) processes including annealing, tempering and normalizing were performed. The post-tempered weldment exhibited improved grain refinement over the as-welded. The as-welded joint is characterized with the formation of hard martensitic phase and CrC precipitates while the post-weld heat treated (PWHTed) joints consist more of softer ferritic phase. The PWHTs resulted in the weldment hardness reduction with post-annealed demonstrating the least hardness. Only the post-tempered weldment demonstrated improved tensile strength (~5.2%) over the as-welded (421 MPa). All the PWHT processes resulted in improved elongation (i.e., ductility) and impact energies over the as-welded. While the entire PWHTed weldments demonstrated ductile fracture mode, the as-welded sample exhibited a combination of ductile and brittle fracture mode after the tensile test.