The present study investigates the softening kinetics of two cerium (Ce)‐modified steels after 60% cold rolling and annealing at 600 °C for 2–16 h. Cold rolling accumulates substantial strain in the ferritic matrix of low Ce (LCe) steel (0.03 wt% Ce) compared to high Ce (HCe) steel (0.6 wt% Ce). The acicular ferrite and Fe3C partition the imposed strain preferentially inside the ferrite matrix of LCe sample. Contrarily, a homogenous strain distribution in HCe sample is promoted by soft Ce2O3 particles embedded in ferrite. Both the steels achieve partial recovery and recrystallization even after 16 h of annealing. LCe steel experiences a softening fraction of ≈28 vol% after 16 h, inferior to HCe steel (≈34 vol%). During initial stage of annealing, nucleation of strain‐free grains are observed in LCe sample due to availability of grain and interphase boundaries. Subsequently, recrystallization kinetics get delayed because of the pinning effect exerted by fine CeO2 and Fe3C particles. In HCe samples, the early stage of ferrite nucleation is hindered by the segregation of Ce at grain boundaries. However, at a later stage, the recrystallization kinetics are accelerated owing to the ineffective pinning of dislocations and boundaries by coarse Ce2Fe17 and Ce2C3 particles.