The fact that the microstructure of steel depends on its composition and the heat treatment given to it has been heavily exploited in the design of steel for power plant applications. To obtain a steel that can function at the higher temperature where power plants operate without failure for extended life, heat treatment is needed to produce fine and highly stable dispersion of carbides, nitrides, and intermetallic compounds in the microstructure of the material. A significant contribution also comes from solid solution strengthening by substitutional solutes. We review here various types of phases, microstructures, functions, and interacting effects of the various alloying elements in the design of steel for modern power plant application.