Dynamic softening and substructural changes during hot deformation of a ferritic Fe-26Cr stainless steel were studied. The flow stress increased to reach a steady state in all the cases and the steadystate stress decreased with decreasing Z, the Zener-Hollomon parameter. A constant subgrain size was observed to correspond to the steady-state flow and the steady-state subgrain size increased with decreasing Z. Substructure examinations revealed that elongated, pancake-shaped subgrains formed in the early stage of deformation. Straight sub-boundaries and equiaxed subgrains developed progressively with strain, leading eventually to a stable substructure at strains greater than 0.7. During deformation at 1100 ЊC, dynamic recrystallization occurred by the migration and coalescence of subboundaries. Dynamic recovery dominated during deformation at 900 ЊC, resulting in the formation of fine equiaxed subgrains. Based on microstructural observations, the process of substructural changes during hot deformation was described by a schematic diagram.