In this article, a detailed study was conducted to evaluate the microstructural evolution and mechanical properties of microalloyed steels processed by thermomechanical schedules incorporating cool deformation. Cool deformation was incorporated into a full scale simulation of hot rolling, and the effect of prior austenite conditioning on the cool deformability of microalloyed steels was investigated. As well, the effect of varying cooling rate, from the end of the finishing stage to the cool deformation temperature, 673 K (400°C), on mechanical properties and microstructural evolution was studied. Transmission electron microscopy (TEM) analysis, in particular for Nb containing steels, was also conducted for the precipitation evaluation. Results show that cool deformation greatly improves the strength of microalloyed steels. Of the several mechanisms identified, such as work hardening, precipitation, grain refinement, and strain-induced transformation (SIT) of retained austenite, SIT was proposed, for the first time in microalloyed steels, to be a significant factor for strengthening due to the deformation in ferrite. Results also show that the effect of precipitation in ferrite for the Nb bearing steels is greatly overshadowed by SIT at room temperature.