This work presents the results of investigations using Mössbauer spectroscopy technique and their interpretation concerning retained austenite (RA) and its transformation during tempering in relation to previously conducted dilatometric, microscopic and mechanical investigations. This research was conducted on a new high-carbon alloy steel 120 MnCrMoV8-6-4-2, which was designed in 1998, in Phase Transformations Research Group at the AGH UST. The influence of the tempering time on the mechanical and chemical stability of retained austenite and on the products of its transformation, nucleation and solubility of ε carbides and cementite nucleation and growth, was determined.