The microstructural changes in a 3%Co modified P911 heat resistant steel were examined under static annealing and creep at elevated temperatures. The quenched steel was tempered at temperatures ranging from 673 to 1073 K for 3 hours. The temperature dependence of hardness for the tempered samples exhibits the maximum at 723 – 823 K which is associated with the precipitations of fine carbides with an average size of about 20 nm. The transverse lath size of martensitic structure is 200 nm after air quenching and remains unchanged under tempering at temperatures below 800 K. An increase in tempering temperature to 1073 K resulted in hardness drop. Coagulation of carbides and growth of martensitic laths takes place at these temperatures. The creep tests were carried out at 873 and 923 K up to rupture, which occurred after about 4.5 × 103 hours. The structural changes in crept specimens were characterized by the development of coarse laths/subgrains. The mean transverse size of which was 0.67 and 1.3 m after the creep tests at 873 and 923 K, respectively. On the other hand, an average size of second phase particles of 165 nm was observed in the samples tested at both temperatures.