The influence of starting point microstructures on the transformation mechanisms and mechanical properties of a micro alloyed steel after annealing in the alpha + gamma region have been investigated. Three different microstructures: austenite, pearlite in a ferrite matrix and martensite were used as starting point microstructures for the production of dual (alpha + <IMG SRC="/img/revistas/mr/v11n1/18s1.gif">) phase structures in the test steel. Photomicrographs obtained from metallographic examination of the heat treated samples were used as criteria for the assessment of results obtained from impact toughness and hardness testing. The results obtained showed that the transformation mechanisms and hence the morphology of ferrite - martensite microalloyed steels are strongly influenced by their initial microstructural details. Ferrite - martensite structures produced via the intercritical quench (IQ) treatment, with martensite as the starting point microstructure, have the best combination of hardness and impact energy.