The origin of the habit plane of the martensite phase (α ′) in low-carbon steels is elucidated by threedimensional phase-field simulations. The cubic → tetragonal martensitic transformation and the evolution of dislocations with Burgers vector a α ′ /2〈111〉 α ′ in the evolving α ′ phase are modeled simultaneously. By assuming a static defect in the undercooled parent phase (γ ), we simulate the heterogeneous nucleation in the martensitic transformation. The transformation progresses with the formation of the stress-accommodating cluster composed of the three tetragonal domains of the α ′ phase. With the growth of the α ′ phase, the habit plane of the martensitic cluster emerges near the (111) γ plane, whereas it is not observed in the simulation in which the slip in the α ′ phase is not considered. We observed that the formation of the (111) γ habit plane, which is characteristic of the lath martensite that contains a high dislocation density, is attributable to the slip in the α ′ phase during the martensitic transformation.