This paper reports about a combined neutron and X-ray diffraction study on the residual stresses in the ferrite matrix of cold-rolled fully pearlitic steel sheet. Neutron diffraction revealed compressive residual phase microstresses of about – 500 MPa in rolling direction. However, even in normal direction there are significant tensile residual microstresses, indicating that the morphology of the lamellar microstructure cannot be properly described as a “sandwich structure”. Neutron diffraction was also used during an in-situ tensile test to estimate the microstress level in the cementite phase. The combination of neutron and X-ray diffraction allows to separate, near the surface, the residual phase microstresses from the macrostresses. The latter are also important in rolling direction and imply some risk of undesirable shape changes after forming operations.