A new low-activation austenitic steel with a modified composition and high austenite stability is proposed. The features of its microstructure after solution treatment (ST) and cold rolling (CR) are studied. The mechanical properties and features of the fracture behavior of this steel under tensile tests in the temperature range of 20–750 °C are discussed. After ST, an austenitic structure with stacking faults and dispersed carbide particles of the MC and M23C6 types is observed in the steel. After CR, the grains are refined, and the average grain size decreases from 41.4 µm (after ST) to 33.9 µm. High-density microtwin packets form in the material, and the dislocation density increases relative to that after ST. As the test temperature increases from 20 to 750 °C, the yield strength of the steel decreases by approximately two times, from ≈300 to 150 MPa (for ST) and from ≈700 to 370 MPa (for CR). In the studied temperature range, the steel demonstrates up to 2.6 times higher values of elongation to failure, ≈40–80% (for ST) and ≈13–27% (for CR), compared to steels of similar compositions and lower manganese content. Mechanical twinning contributes to the high steel ductility up to 300 °C. Signs of discontinuous flow in the tensile curves after ST in the temperature range of 500–600 °C and a decrease in the elongation to failure in the close temperature range indicate dynamic strain aging (DSA). Steel fracture after tension at all test temperatures mainly occurs via a ductile dimple transcrystalline mechanism with elements of ductile intercrystalline fracture. It is shown that cracks nucleate on clusters of dispersed second-phase particles. The mechanisms of plastic deformation, fracture, and strengthening of the proposed modified low-activation austenitic steel are discussed.