The effect of strain-induced martensitic transformation (SIMT) and its reversion (SIMRT) on the microstructure evolution and localised corrosion of 2304 lean duplex stainless steel (LDSS) was investigated. The cold-rolled LDSS was subjected to reverse annealing at 600°C to 900°C for 1800 s. To evaluate the microstructure, scanning (SEM) and transmission electron microscopy (TEM) and electron backscatter diffraction (EBSD) were used as the main techniques. Subsequent electrochemical characterisation included cyclic polarisation and double loop-electrochemical potentiokinetic reactivation test. SIM formation was noticed after cold rolling, and a partial reverse transformation was seen after annealing at 600°C. At 600°C, SIMRT led to decrease in pitting resistance and increase in the degree of sensitisation (DOS). Increasing the annealing temperature favoured localised and intergranular corrosion resistance. The obtained results indicate that reversed austenitic and recrystallised grains have a beneficial effect on desensitisation and corrosion resistance of 2304 LDSS.